Beiersdorf AG

Annual Report • Mar 10, 2025

Beiersdorf

Beiersdorf 2024

Key Figures - Overview

		2023	2024
Group sales	(in € million)	9,447	9,850
Change (organic)	(in \%)	10.8	6.5
Change (nominal)	(in \%)	7.4	4.3
Consumer sales	(in € million)	7,780	8,162
Change (organic)	(in \%)	12.5	7.5
Change (nominal)	(in \%)	9.1	4.9
tesa sales	(in € million)	1,667	1,688
Change (organic)	(in \%)	3.2	1.9
Change (nominal)	(in \%)	0.0	1.2
Operating result (EBIT, excluding special factors)	(in € million)	1,268	1,370
EBIT margin (excluding special factors)	(in \%)	13.4	13.9
Operating result (EBIT)	(in € million)	1,105	1,294
EBIT margin	(in \%)	11.7	13.1
Profit after tax	(in € million)	749	928
Return on sales after tax	(in \%)	7.9	9.4
Earnings per share	(in €)	3.24	4.05
(Proposed) Total dividend	(in € million)	227	223
(Proposed) Dividend per share	(in €)	1.00	1.00
Gross cash flow	(in € million)	1,057	1,269
Capital expenditure ${ }^{1}$	(in € million)	517	437
Research and development expenses	(in € million)	320	354
Employees	(Number on Dec. 31)	21,958	22,791

[^0]
[^0]: ${ }^{1}$ Figures comprise investments in intangible assets and property, plant, and equipment including acquisitions.

CONTENT

TO OUR SHAREHOLDERS

p. 10 Letter from the CEO
p. 14 Beiersdorf's Shares and Investor Relations
p. 17 Report by the Supervisory Board

COMBINED MANAGEMENT REPORT

p. 23 Foundation of the Group
p. 23 Business and Strategy
p. 28 Research and Development
p. 41 Non-financial Statement
p. 41 General Information
p. 61 Environmental Information
p. 109 Social Information
p. 159 Governance Information
p. 165 Appendix

p. 175 Economic Report

p. 175 Economic Environment
p. 178 Results of Operations
p. 189 Net Assets
p. 190 Financial Position
p. 192 Overall Assessment of the Group's Economic Position
p. 193 Beiersdorf AG
p. 196 Risks and opportunities report
p. 196 Integrated Management System
p. 198 Material Risks and Opportunities
p. 205 Monitoring
p. 206 Summary
p. 206 Internal Control System
p. 207 Adequacy and Effectiveness
p. 207 Independent Monitoring
p. 209 Report on Expected Developments
p. 213 Other Disclosures
p. 213 Corporate Governance Statement
p. 230 Report by the Executive Board on

Dealings among Group Companies
p. 230 Disclosures relating to Takeover Law

CONSOLIDATED FINANCIAL STATEMENTS

p. 234 Consolidated Financial Statements
p. 234 Income Statement
p. 235 Statement of Comprehensive Income
p. 235 Balance Sheet
p. 237 Cash Flow Statement
p. 238 Statement of Changes in Equity
p. 239 Notes to the Consolidated Financial Statements
p. 239 Segment Reporting
p. 240 Regional Reporting
p. 241 Material Accounting Policies
p. 254 Consolidated Group, Acquisitions, and Divestments
p. 255 Notes to the Income Statement
p. 260 Notes to the Balance Sheet
p. 291 Other Disclosures
p. 298 Report on Post-balance Sheet Date Events
p. 299 Beiersdorf AG Boards
p. 302 Beiersdorf AG's Shareholdings
p. 309 Attestations
p. 309 Independent Auditor's Report
p. 319 Independent Auditor's Limited Assurance Report
p. 323 Responsibility Statement by the Executive Board

ADDITIONAL INFORMATION

p. 325 Remuneration Report
p. 353 Ten-year Overview
p. 354 Imprint
p. 355 Financial Calendar

2024 AT A GLANCE

(1)

Sales
2024
2023
2022
2021
2020
in € million

9,850

9,447
8,799
7,627
7,025

Employees

22,791

Full-time-equivalent (FTE)
2023: 21,958

8.

R\&D Expenses
354
in $€$ million
2023: 320 € million

111

Organic Sales Growth
6.5\%
2023: 10.8\%

Group Sales by Region

• 43.8\% Europe
• 30.1\% Africa/Asia/Australia
• 26.1\% Americas
  (1)

EBIT Margin
13.9\%
excluding special factors
2023: 13.4\%

Do you want to learn more about our 2024 results and successes?

Scan the QR code and visit our online report

HIGHLIGHTS 2024

50,000

Our Beiersdorf scientists scrutinized around 50,000 substances - the revolutionary result: Epicelline ${ }^{\circledR}$. The active ingredient reactivates youth genes to turn back the age clock. This discovery is the basis for our anti-aging innovation of the year: Eucerin Hyaluron-Filler Epigenetic Serum.

NIVEA CONNECT promotes meaningful human connections

According to a study by NIVEA, one in four survey respondents felt isolated always or often in the past 12 months'. Through our global NIVEA CONNECT mission, we aim to fight social isolation by setting up projects in 40 countries by 2026.

Strategy update

We updated our strategy and formulated our vision for the years ahead:

We want to be the best skin care company in the world.

Net Zero by 2045

We have set ourselves ambitious climate protection targets: By 2045, we aim to reach Net Zero and reduce the emissions generated across its entire value chain by $90 \%$.

More than

€200
million
is the amount we are investing in a new, state-of-the-art logistics center in Leipzig. The groundbreaking ceremony took place in 2024.

Global Critical Illness Policy

To us, Care Beyond Skin is more than just an empty phrase: With a unified policy, we support employees facing lifethreatening illnesses worldwide.

[^0]
[^0]: ${ }^{1}$ Based on data from a multinational NIVEA study on social isolation with 8,000 respondents, January 2024.

DISCOVER OUR WIN WITH CARE STORIES!

SUSTAINABILITY INNOVATION
(WHITE SPACES

Visit our online report and discover how we Win with Care!

The anti-aging revolution

tesa
The future of bonding is debonding

Microbiome research
New active ingredients for the skin

Chips
Chatite taille
strengthen its
presence

OUR MANAGEMENT TEAM

Executive Board \& Committee (from left): Vincent Warnery, Astrid Hermann, Michael Frey, Ramon A. Mirt, Grita Loebsack, Oswald Barckhahn, Dr. Gitta Neufang, Nicola D. Lafrentz, Patrick Rasquinet

Vincent Warnery

CEO

Ramon A. Mirt

Emerging Markets

Dr. Gitta Neufang
Research \&
Development

Astrid Hermann

Finance, tesa

Grita Loebsack NIVEA

Nicola D. Lafrentz Human Resources

Michael Frey

Supply Chain, Quality Management

Oswald Barckhahn Europe \& North America

Patrick Rasquinet

Luxury

WE ARE BEIERSDORF

At Beiersdorf we have been caring about skin since 1882. Beiersdorf's success is based on its strong portfolio of internationally leading brands. It is thanks to them that millions of people around the world choose Beiersdorf day after day. Our brands boast innovative strength, outstanding quality, and exceptional closeness to our consumers. By responding quickly and flexibly to regional requirements, we are winning the hearts of consumers in nearly all countries worldwide. Our successful skin and body care brands form the focus of our successful brand portfolio and each brand serves very different areas: NIVEA is aimed at the mass market, Eucerin at the dermo-cosmetics market, and La Prairie as well as Chantecaille at the selective cosmetics market. With its Hansaplast, Elastoplast and CURITAS brands, Beiersdorf also has a global presence in the field of plasters and wound care. Through the tesa brand, which has been managed since 2001 by Beiersdorf's independent tesa subgroup, we also offer highly innovative self-adhesive system and product solutions for industry, craft businesses, and consumers.

p. 10 Letter from the CEO
p. 14 Beiersdorf's Shares and Investor Relations
p. 17 Report by the Supervisory Board

TO OUR

SHAREHOLDERS

Letter from the CEO

Dear Shareholders and Readers,

As we look back on 2024, there is no denying that the year was another challenging one, marked by economic and ongoing political unrest. Despite this, we continued to demonstrate our strength, our resilience, and our innovative prowess.

We have put our company on track for a successful future: In the reporting year, we updated our strategy. With "Win with Care" we are raising the bar for our performance and growth. It also clearly articulates our vision to be the best skin care company in the world. The past year gives me cause for optimism that we will achieve our bold aspiration.

Before I go into more detail on our strategy, let's take a look back at the financial year that just ended. Beiersdorf sustained the excellent performance of recent years and again generated record sales in 2024. Once more, we saw rising demand in all regions. And we achieved healthy growth despite a difficult market environment. Success is no coincidence: it is driven by our strong brands, our innovative strength, and our exceptional international teams. With this combination, we demonstrate that we are a reliable, strong, and forward-looking partner for all our stakeholders.

Vincent Warnery, CEO

Strong profitable growth leads to record sales

A glance at our financials confirms our outstanding performance in the 2024 financial year: In organic terms, Group sales rose by $6.5 \%$ year on year, reaching record total sales of $€ 9,850$ million (previous year: $€ 9,447$ million). Despite significant investments, we were able to increase our operating result (EBIT), excluding special factors, from $€ 1,268$ million in 2023 to $€ 1,370$ million in 2024, resulting in an improved EBIT margin of $13.9 \%$ (previous year: 13.4\%). The main sales driver was our Consumer Business Segment.
The strong performance of the NIVEA business ( $9.0 \%$ organic sales growth) as well as our Derma brands Eucerin and Aquaphor ( $10.6 \%$ organic sales growth) had a particularly large impact. Our tesa Business Segment generated sales of $€ 1,688$ million in a challenging market environment, equivalent to organic growth of $1.9 \%$.

Beiersdorf's shares were unable to fully maintain their strong performance from the previous year but reached a new all-time high of over $€ 147.25$ in the second quarter. At the end of the year, Beiersdorf's shares closed at $€ 124.00$, a moderate decline compared to the previous year. Overall, we have increased the share price by more than $30 \%$ since I took over as CEO, outperforming the competition over the entire period (comparative period May 1, 2021 - Dec. 31, 2024).

In light of our positive business performance, Beiersdorf's Executive Board and Supervisory Board will propose a dividend of $€ 1.00$ per dividend-bearing share to the Annual General Meeting.

We are raising the bar for our performance and success

Our business performance shows that we are on the right track. We won't be resting on our laurels. Instead, we will be working hard in the years to come to achieve the vision to be the best skin care company in the world. To help us accomplish this, we updated our strategy over the past year. With "Win with Care" we focus on the following three areas:

• We want to be the undisputed authority in skin care.
• We want to be omnipresent for our consumers.
• We want to combine performance with purpose.

In our quest to be the undisputed authority in skin care, we are relying on our strong brands. We create skin care innovations that make a real difference in the lives of our consumers, focusing in particular on three key future-oriented areas of the skin care market: hyperpigmentation, aging skin, and acne. With our patented active ingredient Thiamido ${ }^{\circledR}$ - a highly effective solution designed to reduce pigmentation marks - we have created a significant growth driver in the area of hyperpigmentation, which we will continue to expand worldwide. An example of this is China, where we were granted regulatory approval for Thiamido ${ }^{\circledR}$ in November 2024 and expect to launch the first products in early 2026. Another success we can build on is our breakthrough in anti-aging solutions: After 15 years of extensive research in epigenetics, we set new standards in 2024 with our patented age clock technology and the active ingredient Epicelline ${ }^{\circledR}$ - leading to the launch of our first epigenetic skin care product, Eucerin Hyaluron-Filler Epigenetic Serum, in September 2024. This milestone further underscores our pioneering role in skin rejuvenation. It is also testament to our unique skin care expertise. What's more, we are among the leading players in the field of microbiome research, particularly since the acquisition of S-Biomedic in late 2022. We are firmly convinced that in the years to come, we will be able to offer our consumers innovative skin care solutions that effectively address skin indications such as acne. Stay tuned for what's coming!

Our "Win with Care" strategy helps us strengthen our presence in all strategic markets, categories, and segments. Our successful launch of Eucerin in India during the past financial year is a good example of how we are tapping into new growth areas in the skin care market and further boosting the face care category in particular. At the same time, we are strengthening our distribution channels, especially in the area of e-commerce, to increase our reach and connect even better with our consumers. This lays the foundation for further growth.

We are seeking to achieve profitable growth and increase the value of our company to ensure its future viability. With those goals in mind, we will focus on implementing the initiatives that offer the greatest potential for Beiersdorf - guided by the principle: "fewer, bigger, better." Cost discipline and efficiency are crucial in strengthening the company in the long run.

But economic success alone is not enough for us. We are pressing ahead with our company's sustainable transformation since we want to lead in climate action and champion a more inclusive society. We have set ourselves the target to achieve Net Zero by 2045. This means, we want to reduce our greenhouse gas (GHG) emissions by $90 \%$ (in absolute terms) and along our entire value chain (vs. 2018). This ambitious target has been validated and approved by the Science-Based Targets initiative (SBTi) and is in line with the Paris Agreement. And we are progressing well and managed to achieve an absolute reduction of $25 \%$ GHG emissions across Scopes 1, 2, and 3 by the end of 2024. Crucial in this context is the transformation of our product portfolio. For example, we converted our blue NIVEA cream tin to $80 \%$ recycled aluminum. In addition, we re-invented our NIVEA Body Lotion assortment with improved formulas and developed lightweight packaging. One of our latest milestones is climateneutral operations across our EU factories, just implemented by the beginning of 2025.

In addition to our climate goals, another important element for us is that our brands and activities make a tangible contribution to promoting a more inclusive society. Our products are not only designed for a wide range of skin indications, but also improve daily well-being, self-confidence, and ultimately quality of life. Our Eucerin brand, for example, takes an active stand against the stigmatization of people with chronic skin diseases. And in 2024, we launched our global mission "NIVEA CONNECT" to combat social isolation. To this end, we will support projects dedicated to this topic in 40 countries by 2026. We also offer our employees support and stability - especially in difficult times: With the introduction of our global "Critical Illness Policy," we are there for them if they fall life-threateningly ill. The policy allows affected employees to focus entirely on their recovery without having to worry about their job or financial security.

Focus on digitalization - and a strong, diverse team

Our new strategy shows that we won't rest on our past achievements. We want to make Beiersdorf even stronger. We want to contribute to society and the environment. And we want to secure and further improve our long-term success. This means that we need to leverage the potential of digitalization at all levels. In Marketing for example, we have introduced a strategic framework to test, scale, and implement generative and analytical Al tools in our daily operations. Currently, we leverage artificial intelligence (AI) for tasks such as content evaluation, target group analysis, and ad placement optimization. However, as outlined in our Al policy, we have made a clear decision never to use Al to create human skin, as we believe that skin is, and should remain, uniquely human.

Furthermore, last year, we again invested heavily in advancing digitalization in research and development. For example, we are increasingly using Al to accelerate efficacy studies and to optimize the speed, quality, and sustainability of our formula development. Our Al-based SKINLY study, a longterm, large-scale, global consumer skin care study, is also providing us with valuable insights for our research and development work. Likewise, we continuously invest in equipping our global production and distribution sites in line with the highest technology and environmental standards. One example is our new, state-of-the-art logistics center in Leipzig, Germany, whose groundbreaking ceremony took place in July 2024. The opening is expected to take place by 2027.

Aside from this ongoing digitalization, however, our shared success hinges on one thing above all: a strong team and an inclusive work environment in which everyone can perform at their best. Together with our corporate strategy, our Core Values act as our guiding light and remain our strong foundation - across teams, countries, and continents. Our aim is to stand out as an employer of choice for international talent. To this end, we foster diversity, equitable opportunities, and inclusion as integral components of our culture. In September 2023, we reached a milestone by achieving 50:50 gender parity within my Executive Committee leadership team and across all management positions worldwide - and we have sustained that momentum throughout 2024. Our progress is also evident in our Supervisory Board, where seven out of 12 members are now women. Looking ahead, our commitment extends to broader initiatives that go beyond gender. We are committed to breaking barriers and redefining inclusion. Therefore, we will increase the representation of people with disabilities within our company. We are conducting mandatory global leadership upskilling sessions to build and strengthen inclusive leaders, working with external disability inclusion partners, and supporting an active employee network focused on enhancing disability inclusion. The Beiersdorf Campus in Hamburg, which opened in 2023, was deliberately designed and built to be accessible, promoting inclusion in the workplace. At Beiersdorf, we will continue to turn bold aspirations into measurable progress and set new standards for equity and accessibility in the workplace.

We recognize that true equity is only achieved when it is accompanied by fair and equal conditions for all. That is why we have performed an audit in 2024 to assess the current state of equal pay at Beiersdorf. This initial audit spanned 50 countries, covering around $70 \%$ of our employees in Beiersdorf's Consumer Business Segment. We identified an adjusted gender pay gap of $0.98 \%$. This

means that our female employees earn an average of 99 cents for every one euro earned by their male colleagues. According to 2024 Mercer Total Remuneration Surveys, the EU median in the FMCG sector stands at $2 \%$. While our current standing is already better than the average, we still aim higher: In 2025, we will expand the audit to encompass all employees in our Consumer Business Segment worldwide. Additionally, we have set an ambitious goal to achieve global certification as a "Universal Fair Pay Leader" by 2026.

Getting future-ready to be the best skin care company in the world

Our strong financial performance in 2024 reflects our company's particular strength and resilience. However, none of this would have been possible without our great teams all over the world! On behalf of the entire Executive Committee, I would like to thank all Beiersdorf employees for their extraordinary passion and commitment. You are the source of our success and together we will continue to surpass ourselves in the years to come and inspire our consumers throughout the world. Your dedication gives me great confidence that we will achieve our vision. I would also like to express my sincere thanks to you, dear shareholders, in particular for your trust and support over the past financial year. Many thanks also to all our business partners and consumers worldwide who place their trust in us every day.

Over the past year, we demonstrated once again that we are a reliable partner. We further developed our strategy to successfully position ourselves for the future. And we again proved our innovative prowess while further strengthening our business through consumer-focused actions and pioneering investments. Our ability to combine outstanding financial performance with responsible conduct lays the foundation for sustainable, competitive, and profitable growth. Our "Win with Care" strategy will help us accelerate this trend and continue our success in 2025. I am excited to take on the tasks that lie ahead of us - after all, we are in an excellent position to achieve long-term success.

As you can see, Beiersdorf is brimming with future potential. I invite you to accompany us on our journey to be the best skin care company in the world.

Yours,

Vincent Warnery

CEO

Beiersdorf's Shares and Investor Relations

After a challenging financial year 2023, expectations for 2024 were characterized by caution and uncertainty. The geopolitical situation remained tense, with the Russia-Ukraine conflict continuing and developments in the Middle East, along with new tensions in the Red Sea posing additional risks for global markets. The global economy showed sustained, albeit moderate, growth in 2024, reflecting a continuation of the previous year's performance. Economic activity in the eurozone picked up slightly compared to the previous year. However, global challenges such as macroeconomic difficulties in China and high interest rates in the USA, as well as ongoing inflation concerns, slowed economic momentum. Economic conditions in 2024 were largely shaped by developments in inflation and central banks' monetary policies. In Germany, inflation stabilized at a moderate level, while the European Central Bank (ECB) initiated several interest rate cuts from the middle of the year onwards. In the USA, high interest rates remained a negative factor, although a downward trend was discernible.

The global economic outlook for the coming years has weakened following the announcement of a more protectionist trade policy under US President Donald Trump. Introducing tariffs to enforce political objectives could lead to increased uncertainty at an international level. Heavily export-oriented economies such as Germany and China, whose economic development could be hampered by additional trade barriers, are likely to be particularly affected. More moderate growth in China would also have a potentially far-reaching impact on the global economy, as reduced demand for imports of primary products and raw materials would have a noticeable effect worldwide. The trade policy measures planned by the USA are also likely to have an impact on global inflation trends. In the USA itself, these newly introduced import tariffs could have an inflationary effect, particularly if companies pass on the increased costs to consumers. In the eurozone, possible retaliatory tariffs and a devaluation of the euro could increase inflationary pressure, although a weakening of the economy should mitigate this effect in the long term. Overall, we can assume that the already slow decline in inflation will be further delayed, with rising costs, particularly in the services sector, continuing to act as a driving force. These developments could further delay future interest rate policy moves by central banks.

Monetary policy also dominated events on the capital markets, with concerns about rising inflation rates potentially delaying additional interest rate cuts. The markets reacted sensitively to the central banks' outlook, while there were signs of stabilization on the commodity markets. After a temporary rise in oil prices, the market calmed down again towards the end of the year.

Beiersdorf's shares were unable to fully maintain their strong performance from the previous year in a challenging market environment. After a cautious start in the first few months of the year, the shares went on to recover and reached a new all-time high of $€ 147.25$ in the second quarter. This positive development was supported by solid results, which were better than those of our competitors in many areas. As the year progressed, however, the share price came under pressure as the challenging market environment continued to have a negative impact, particularly on the luxury segment in China. Nevertheless, our core brands, especially NIVEA and the Derma brands, once again proved to be strong pillars underpinning the stability of the business model, with the result that the decline in the share price was more modest than that of many of our competitors.

At the end of the year, Beiersdorf's shares closed at $€ 124.00$, a moderate decline compared to the previous year. Despite this development, the company's long-term prospects remain intact thanks to its innovative strength, strong brands, undeveloped business areas (white spaces), and a strategy geared towards long-term value creation with a focus on profitable growth.

This year's Annual General Meeting was once again held virtually at the company's headquarters in Hamburg, Germany. In addition to shareholders being able to dial in, interested parties were also able

to follow the event virtually for the third time. This year too, shareholders had the opportunity to use a virtual speakers' desk that was available worldwide. This enabled them to ask questions live and engage in direct dialog with the Executive Board - an interactive feature intended to uphold the spirit of inperson events and facilitate exchange even in a digital environment.

In 2024, the focus of our communication with the capital market was on our innovative strength and targeted expansion into previously untapped markets. This included Eucerin Face's entry into the US market and the ongoing global expansion of our Thiamidol ${ }^{\circledR}$ product line. The launch of Epicelline ${ }^{\circledR}$ in the second half of the year was another highlight. It soon became clear that our expectations had been far exceeded and the product received an extremely positive response from our consumers. We also held a Capital Markets Day in 2024, at which we were able to give our investors a deeper understanding of our innovation strategy and present our "Win with Care" strategy.

In the reporting year, around 22 financial analysts regularly published studies on Beiersdorf. The number of buy recommendations continued to rise over the course of the year, with the majority of analysts recommending Beiersdorf shares as a buy by the end of financial year 2024.

For more information on Beiersdorf's shares please visit: www.beiersdorf.com/investor-relations/shares/share-price

For more information on Investor Relations please visit: www.beiersdorf.com/investor-relations

Analyst Recommendations
as of Dec. 31, 2024 (in \%);
percentages may not total $100 \%$ due to rounding

Shareholder Structure
as of Dec. 31, 2024 (in \%);
percentages may not total $100 \%$ due to rounding

Source: Beiersdorf AG

Key Figures - Shares

		2023	2024
Earnings per share as of Dec. $31^{1}$	(in €)	3.24	4.05
Market capitalization as of Dec. $31^{1}$	(in € million)	30,779	27,679
Closing price as of Dec. 31	(in €)	135.70	124.00
Closing high for the year	(in €)	135.85	147.25
Closing low for the year	(in €)	107.15	120.50

[^0]
[^0]: ${ }^{1}$ Calculated using shares outstanding, excluding treasury shares.

Beiersdorf's Share Price Performance 2024
Jan. 1 - Dec. 31; relative change in \%

130
Beiersdorf DAX

120

Basic Share Data

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Report by the Supervisory Board

Dear Shareholders,

In accordance with statutory laws, the German Corporate Governance Code, the Articles of Association, and the bylaws, the Supervisory Board supervised and advised the Executive Board, focusing particularly on the updated "Win with Care" strategy and on corporate planning, accounting, the course of business, the position and outlook, risk management, the internal control system, and compliance. The Executive Board reported regularly during and between the Supervisory Board meetings, both in writing and orally, particularly on significant events and developments in the business and market. The Supervisory Board also discussed and considered external views and developments concerning good corporate governance in Germany and other countries. There were no indications of any conflicts of interest relating to Executive Board or Supervisory Board members.

The Executive Board and Supervisory Board worked together on the detailed preparation and follow-up of meetings. Discussions took place with and among Supervisory Board members prior to and after the meetings, which were held face-to-face and by video conference. Some members attended face-to-face meetings by video. A secure digital platform is available for drafts, documents, and comments.

The Supervisory Board was re-elected with effect from the end of the Annual General Meeting on April 18, 2024: employee representatives Jan Koltze, Olaf Papier and Kirstin Weiland along with new members Hilde Cambier, Doris Robben, and Barbara Wentzel, and shareholder representatives Hong Chow, Wolfgang Herz, Uta Kemmerich-Keil, Frédéric Pflanz and Reinhard Pöllath along with new member Donya-Florence Amer.

Supervisory Board training took place in the fall, in particular for the new members. The training covered topics such as the rights and duties of the members of the Supervisory Board of a listed stock corporation, sustainability targets, and the company's risk management and internal auditing.

Full Supervisory Board

The Supervisory Board met five times (face-to-face). The meetings regularly addressed strategic orientation, business developments, interim financial statements, compliance, Executive Board matters, and significant individual transactions. Proposed resolutions were carefully examined and discussed. All members of the Executive Board generally took part in the Supervisory Board meetings. Part of each meeting took place in the presence of the Supervisory Board members alone. In certain cases, Supervisory Board resolutions were also passed outside of meetings by written procedure.

On February 5, 2024, the Supervisory Board discussed the achievement of the Executive Board targets for financial year 2023, set the total remuneration for Executive Board members, and adopted the 2023 remuneration report. The Supervisory Board had an in-depth discussion on the Executive Board's proposals passed on that day for a dividend of $€ 1.00$ per no-par-value share bearing dividend rights and for a share buyback program and approved them. The Supervisory Board also passed a resolution to amend the Executive Board's schedule of responsibilities and addressed other Executive Board matters.

On February 23, 2024, the Supervisory Board had an in-depth discussion about the development of the business in 2023. The Executive Board gave a detailed presentation on key financial figures and developments in market share as well as on selected topics concerning the business segments and discussed the outlook for financial year 2024. Other topics comprised current innovations, investment

projects, and the new campus. The auditor gave a thorough report on the scope, areas of emphasis, and findings of the audit. After intensive discussion, the Supervisory Board approved the annual and consolidated financial statements and the combined management report for Beiersdorf AG and the Group, including the Corporate Governance Statement and the combined Non-financial Statement for Beiersdorf AG and the Group. It thereby adopted the annual financial statements for financial year 2023. It discussed the Executive Board reports on dealings among Group companies and on the disclosures required under takeover law and approved the Supervisory Board's report to the Annual General Meeting. It confirmed the proposal for the appropriation of net retained profits for the 2023 financial year (dividend of $€ 1.00$ per no-par value share bearing dividend rights) and approved the agenda and proposed resolutions for the online Annual General Meeting on April 18, 2024. In addition, the Supervisory Board adopted the Audit Committee's recommendation to propose PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft to the Annual General Meeting as the new auditor. At the recommendation of the Nomination Committee, the shareholder representatives approved the nominations to the Annual General Meeting for the election of new shareholder representatives to the Supervisory Board.

On April 18, 2024, at the constitutive meeting following the Annual General Meeting, the Supervisory Board members elected a chairperson, a deputy chairperson, and an additional deputy. They also appointed two diversity officers. The members of all Supervisory Board committees were newly elected, including the members of a new Digital and ESG Committee introduced by the Supervisory Board. The Supervisory Board received a report on business performance in the current financial year. It discussed the upcoming Brands Summit and investment projects. Finally, the Supervisory Board adopted a resolution to issue the audit engagement to the new auditor, for the auditor's review of the 2024 halfyear financial statements, and the audit of the annual financial statements for financial year 2024.

On August 30, 2024, the Supervisory Board discussed business developments in the Consumer division using reports on selected topics from the Executive Board's areas of responsibility. In particular, it received reports on the market share trends of individual brands and categories, plans for the key markets in India and the USA, the launch of product innovations, the refinement of the "Win with Care" strategy, and ongoing investment projects. The Supervisory Board also received a detailed report on business performance and strategy in the tesa segment. Finally, it dealt with Executive Board matters and adopted a resolution on the principles of the Executive Board remuneration system applicable from 2025.

On November 29, 2024, the Supervisory Board discussed the Group's business performance up to the end of October using the key financial figures and development of market share by region, brand, and category. It received a report from the Executive Board on selected highlights in the implementation of the "Win with Care" strategy and on the outlook for 2025. The Supervisory Board approved the corporate planning for 2025 and adopted the Declaration of Compliance with the German Corporate Governance Code for financial year 2024, as well as the targets for the composition and the profile of skills and expertise for the Supervisory Board. Finally, the Supervisory Board set the targets and target total remuneration for the members of the Executive Board for financial year 2025 and confirmed their appropriateness.

In February 2025, the Supervisory Board discussed the achievement of the targets set for the Executive Board for financial year 2024, determined the total remuneration, and substantiated annual targets. It approved the annual and consolidated financial statements, along with the associated reports, and approved the proposed resolutions for the Annual General Meeting on April 17, 2025.

Committees

The Supervisory Board prepares its work in seven committees. These can make decisions in place of the Supervisory Board in individual cases. The chairpersons of the committees provided the Supervisory Board with regular detailed reports on the committees' work. As in the previous years, the Mediation Committee did not meet in financial year 2024.

The Presiding Committee (seven face-to-face meetings) discussed business performance, Executive Board remuneration, and other Executive Board matters along with individual important transactions and investments. It prepared and followed up on the meetings of the full Supervisory Board.

The Audit Committee (seven meetings, of which six were face-to-face and one was by video conference) primarily performed the preliminary examination of the annual and interim financial statements and combined management report, and discussed the Executive Board's proposal for the appropriation of net retained profits. The committee verified the independence and discussed the appointment of the former as well as the new auditor, specified the areas of emphasis for the audit, and discussed the legislative changes affecting the audit process. Based on the tendering procedure conducted in the previous year, the committee made a proposal to the Supervisory Board for the election of the new auditor by the Annual General Meeting. The new auditor reported to the Audit Committee on the key findings of the audit, the results of the audit review of the half-year report for 2024, and other auditing matters. The committee, whose meetings on audit-related matters were also attended by the former and with regard to financial year 2024 the new auditor, regularly addressed business developments and internal audit results. Other matters regularly discussed comprised risk management, sustainability reporting, the implementation of requirements under the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz), the scope of non-audit services provided by the auditor, and the onboarding of the new auditor.

Discussions in the Finance Committee (four face-to-face meetings) focused primarily on investments and the investment strategy. It received regular reports on investment projects as well as on the implementation of the share buyback program carried out by Beiersdorf AG. Other topics included the introduction of a new ERP system (enterprise resource planning), crisis management, compliance, and tax.

The Personnel Committee (two face-to-face meetings) discussed the long-term planning of positions on and beneath the Executive Board. In this context, it looked at the development and management of talent. The committee also addressed diversity and inclusion along with employer branding.

The Digital and ESG Committee newly established in 2024 (two face-to-face meetings) discussed the CSR Directive, data strategy and data protection, and artificial intelligence. It also discussed the structure and security of technology in Beiersdorf's business processes.

The Nomination Committee (one face-to-face meeting), taking into account the Supervisory Board's targets for its composition, the profile of skills and expertise, and the other requirements arising from law and the German Corporate Governance Code, decided on its recommendation to the full Supervisory Board concerning the candidates to be proposed to the Annual General Meeting on April 18, 2024.

Meeting Attendance

The attendance rate in meetings was approximately $98 \%$ for the full Board, approximately $91 \%$ for the Audit Committee, $95 \%$ for the Finance Committee, and 100\% for the Presiding, Personnel, Digital and ESG, and Nomination Committees. The individual members of the Supervisory Board attended the meetings of the full Board and the committees as follows:

Participation of Supervisory Board Members in Full Board and Committee Meetings in Financial Year 2024

Name	Full Board	Presiding Committee	Audit Committee	Finance Committee	Nomination Committee	Personnel Committee	Digital- \& ESG Committee
Donya-Florence Amer	$3 / 3$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$2 / 2$
Hilde Cambier	$3 / 3$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$2 / 2$
Hong Chow	$5 / 5$	$\cdot$	$\cdot$	$\cdot$	$1 / 1$	$2 / 2$	$\cdot$
Reiner Hansert	$2 / 2$	$\cdot$	$3 / 3$	$1 / 1$	$\cdot$	$1 / 1$	$\cdot$
Wolfgang Herz	$5 / 5$	$7 / 7$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$\cdot$
Uta Kemmerich-Keil	$5 / 5$	$\cdot$	$7 / 7$	$4 / 4$	$\cdot$	$2 / 2$	$2 / 2$
Andreas Köhn	$2 / 2$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$1 / 1$	$\cdot$
Jan Koltze	$4 / 5$	$\cdot$	$3 / 4$	$3 / 3$	$\cdot$	$\cdot$	$\cdot$
Dr. Dr. Christine Martel	$2 / 2$	$\cdot$	$2 / 3$	$1 / 1$	$1 / 1$	$\cdot$	$\cdot$
Olaf Papier	$5 / 5$	$\cdot$	$7 / 7$	$4 / 4$	$\cdot$	$1 / 1$	$\cdot$
Frédéric Pflanz	$5 / 5$	$7 / 7$	$7 / 7$	$4 / 4$	$1 / 1$	$2 / 2$	$2 / 2$
Prof. Dr. Reinhard Pöllath	$5 / 5$	$7 / 7$	$3 / 4$	$2 / 3$	$1 / 1$	$\cdot$	$\cdot$
Doris Robben	$3 / 3$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$1 / 1$	$2 / 2$
Prof. Manuela Rousseau	$2 / 2$	$2 / 2$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$\cdot$
Kirstin Weiland	$5 / 5$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$2 / 2$	$\cdot$
Barbara Wentzel	$3 / 3$	$5 / 5$	$\cdot$	$\cdot$	$\cdot$	$\cdot$	$2 / 2$

Annual Financial Statements and Audit

The annual financial statements are prepared in accordance with the requirements of the Handelsgesetzbuch (German Commercial Code, HGB), and the consolidated financial statements in accordance with the International Financial Reporting Standards (IFRSs), as adopted by the EU, and taking into account the applicable interpretations of the IFRS Interpretations Committee. The supplementary requirements of German law are also applied. The auditor audited the 2024 annual financial statements and consolidated financial statements, the combined management report for Beiersdorf AG and the Group, and the combined Non-financial Statement for Beiersdorf AG and the Group and issued unqualified audit opinions for them. With regard to the Executive Board's report on dealings among Group companies ( $\$ 312$ Aktiengesetz (German Stock Corporation Act, AktG)) required due to the majority interest held by maxingvest GmbH \& Co. KGaA, Hamburg, the auditor, following the completion of the audit in accordance with professional standards, confirmed that the information contained therein is correct; that the compensation paid by the company with respect to the transactions listed in the report was not inappropriately high; and that there are no circumstances which would justify, in relation to the measures specified in the report, a materially different opinion than that held by the Executive Board.

The Supervisory Board received the financial year 2024 annual financial statements, consolidated financial statements, combined management report for Beiersdorf AG and the Group, including the combined Non-financial Statement for Beiersdorf AG and the Group, the report on dealings among Group companies, and the Auditor's Reports immediately after their preparation. Prior to this, the Supervisory Board received and discussed drafts of the provisional financial statements. The auditor participated in the deliberations of the Supervisory Board on the annual financial statements of Beiersdorf AG and the Group and reported on the key findings of the audit to the Audit Committee and to the full Supervisory Board. The Supervisory Board's examination of the annual financial statements and consolidated financial statements, combined management report, and combined Non-financial

Statement for Beiersdorf AG and the Group, the report on dealings among Group companies, including the concluding declaration by the Executive Board, and the Auditor's Reports did not raise any objections. At an ordinary meeting on February 25, 2025, the Supervisory Board concurred with the auditor's findings and approved the annual financial statements of Beiersdorf AG and the consolidated financial statements for the year ending December 31, 2024; the annual financial statements of Beiersdorf AG are thus adopted. The Supervisory Board endorsed the Executive Board's proposal on the appropriation of retained net profits.

On behalf of the company, the Supervisory Board would like to thank the Executive Board, all Beiersdorf employees, and all our retail and business partners around the world. Our loyal, long-term stakeholders deserve a worthwhile and valued relationship with us. Your tireless commitment to our customers is what drives that value. The Supervisory Board would also like to thank shareholders, analysts, and observers for their constructive criticism and suggestions for improvement; they all merit attention and we take them on board. The company has great potential to improve its customer service worldwide, and the whole team at Beiersdorf is working confidently and creatively to leverage that. Thank you for the role you have played in moving our business forward in 2024. We wish you all a peaceful and successful 2025.

Hamburg, February 25, 2025
For the Supervisory Board

Reimand

Reinhard Pöllath

Chairman

p. 23	Foundation of the Group	p. 196	Risks and Opportunities Report
p. 23	Business and Strategy	p. 196	Integrated Management System
p. 28	Research and Development	p. 198	Material Risks and Opportunities
p. 41	Non-financial Statement	p. 205	Monitoring
p. 41	General Information	p. 206	Summary
p. 61	Environmental Information	p. 206	Internal Control System
p. 109	Social Information	p. 207	Adequacy and Effectiveness
p. 159	Governance Information	p. 207	Independent Monitoring
p. 165	Appendix	p. 209	Report on Expected Developments
p. 175	Economic Report	p. 213	Other Disclosures
p. 175	Economic Environment	p. 213	Corporate Governance Statement
p. 178	Results of Operations	p. 230	Dealings among Group Companies
p. 189	Net Assets	p. 230	Disclosures relating to Takeover Law
p. 190	Financial Position
p. 192	Overall Assessment of Economic Position
p. 193	Beiersdorf AG

COMBINED MANAGEMENT REPORT

Foundation of the Group

Business and Strategy ${ }^{1}$

Beiersdorf is one of the world's leading consumer goods companies with a portfolio of strong, global brands, over 190 international affiliates, and more than 22,000 employees. Pioneering innovations, iconic brands and a close connection to our consumers have always been the foundation of our success.

To achieve this, it's crucial to have the right people. Our employees, with their commitment, knowledge, and expertise, play a key role in ensuring that our brands and products are appreciated and purchased all over the world. We offer them attractive conditions and a wide range of opportunities to develop personally and actively shape Beiersdorf's future.

Our business is subdivided into two separate, independently operating business segments. In both segments, we hold a leading position in the market:

• In the Consumer Business Segment, our focus is on skin and body care. Our portfolio comprises brands such as NIVEA, Eucerin, La Prairie, Chantecaille, and Hansaplast, which are trusted by people around the world.
• In the tesa Business Segment, we concentrate on developing innovative adhesive tapes and selfadhesive solutions for industry, trade, and end consumers. Since 2001, tesa has been managed as an independent subgroup.

As of December 31, 2024, we employed a total of 22,791 people worldwide in the two business segments, which is $3.8 \%$ more than the previous year (previous year: 21,958 ). Of this total, 7,003 (previous year: 6,778 ) were employed in Germany, corresponding to a share of $31 \%$ (previous year: $31 \%$ ). A total of 17,386 employees worked in the Consumer Business Segment (previous year: 16,769) and 5,405 at tesa (previous year: 5,189).

Group Employees
Full-time equivalent (FTEs), as of Dec. 31, 2024

Detailed information on our progress and measures relating to our employees can be found in the "Non-financial Statement."

[^0]
[^0]: ${ }^{1}$ All figures related to employees in this chapter are presented as full-time equivalents (FTEs).

Consumer

Our Strategy

For over 140 years, the Beiersdorf name has stood for innovative skin care and pioneering skin research. Our ambition is to make people feel good in their skin - but for us, this goes far beyond skin care. Our Care Beyond Skin purpose expresses how we see ourselves: We want to win people over not only with unique skin care, but also by making a positive contribution to society.

At the end of 2023, we formulated our clear vision for the coming years: We want to be the best skin care company in the world. To achieve this, we further developed our strategy in the reporting year. With "Win with Care" we are building on the strong economic successes of recent years, while simultaneously raising the bar for our performance and growth. We are focusing on the development of our brands, the introduction of ground-breaking innovations and the development of additional growth areas (white spaces). We are also pressing ahead with our commitment to climate action and creating added value for society. We have summarized these ideas in three strategic choices in our "Win with Care" strategy:

• We want to be the undisputed authority in skin care.
• We want to be omnipresent for our consumers.
• We want to combine performance with purpose.
  

To achieve our strategic priorities, we are focusing on two foundational success factors. Firstly, we want to win together as a team and shape the future of skin care with our high-performing, diverse employees. We are doing everything we can to be the employer of choice for talented people who share our values and reflect the diversity of our consumers. And secondly, we are leveraging the potential of digitalization. By using the opportunity to create new skin care experiences and optimize our end-to-end processes, we are making Beiersdorf fit for the future.

We Want to Be the Undisputed Authority in Skin Care

With our first strategic choice - our ambition to be the undisputed authority in skin care - we are putting our strong brands and our innovative power center stage. We want to offer our consumers pioneering skin care solutions and are focusing on developing innovative products that make a real difference to

their lives. This includes further strengthening our brands and positioning them more specifically in their respective segments and with the relevant target groups.

Innovations are essential. They are part of our DNA and a fundamental key to our success. Since our foundation in 1882, we have repeatedly set new standards in skin care with our innovations, and we are continuing on this path with our "Win with Care" strategy. In the coming years, we will therefore be focusing on strong growth in three important future areas of the skin care market: hyperpigmentation, aging skin, and acne.

In the area of hyperpigmentation, we have created a huge growth driver for our company in the form of Thiamidol ${ }^{\circledR}$, an active ingredient developed and patented by us. And we will expand the use of this effective anti-pigmentation ingredient across our entire brand portfolio on a global scale. In China, one of our most important strategic growth markets, we reached a significant milestone in November 2024 when we received official regulatory approval for the active ingredient Thiamidol 630® - the first step on the way to full approval of end products containing Thiamidol ${ }^{\circledR}$ in China. We expect the first products to be available in China by early 2026.

We are opening up another major growth area with our expertise in epigenetics, a field whose potential Beiersdorf recognized at an early stage. The development of our patented, skin-specific age clock technology and our active ingredient Epicelline ${ }^{\circledR}$ are the results of over 15 years of epigenetic research. In September 2024, we successfully launched our first epigenetic skin care product, Eucerin HyaluronFiller Epigenetic Serum, with which we are once again underlining our pioneering role in the field of skin rejuvenation. We will continue to build on this with our "Win with Care" strategy.

In the area of microbiome research, we significantly strengthened our innovative power with the acquisition of S-Biomedic in late 2022. We are convinced that we will be able to offer our consumers innovative skin care solutions for skin indications such as acne in the coming years.

We Want to Be Omnipresent for Our Consumers

The second strategic choice under our "Win with Care" strategy is aimed at further expanding the presence of our products in all strategic markets, categories, and segments and addressing our consumers wherever they are - from traditional retail to the latest digital platforms. To achieve this, we are focusing on various areas, such as systematically developing growth areas (white spaces) in skin care and expanding new sales opportunities, particularly in the area of e-commerce.

Beiersdorf has achieved great success in expanding into new regions and markets. But there are still a lot of white spaces where our brands have little or no presence. We want to exploit this potential as part of our "Win with Care" strategy and make focused progress in introducing relevant brands. The face care segment is a high priority here.

Sales channels are another area where we see potential for increasing our presence for our consumers. As e-commerce is our fastest-growing sales channel, we will continue to systematically expand our activities in this area. We are also constantly reviewing and evaluating new channels for their attractiveness in the rapidly changing retail environment. The same applies to potential acquisitions and promising investment opportunities.

We Want to Combine Performance With Purpose

Our third strategic choice under the "Win with Care" strategy focuses on profitable growth and increasing the value of our business. By doing so, we want to secure the future viability of our company and further expand our market position in all segments - from mass market to premium business, including the dermatology and health care segments. Cost discipline and efficiency are of crucial importance here. At the same time, we will focus on implementing fewer but bigger and better

initiatives in the future, specifically targeting those where we see the greatest potential for our company.

Profitability alone is not enough for us. We are advancing the sustainable transformation of our company and making a contribution to the environment and society. Our goals regarding the reduction of GHG emissions have been validated by the Science-Based Targets initiative (SBTi) to be in line with the Paris Agreement. We have already made progress in terms of sustainability by further developing our product packaging, formulas, and formulations, and have set ourselves ambitious targets in order to continue on this path. You can find more information on this topic in the "Non-financial Statement."

As part of our "Win with Care" strategy, it is also important to us that our brands and activities make a tangible contribution to promoting a more inclusive society. Our products not only help solve skin indications, but also improve daily well-being, self-confidence and ultimately quality of life. In this context, one of the things we do is actively combat the stigmatization of people with chronic skin conditions. Our NIVEA brand is also committed to society with "NIVEA CONNECT," a global mission to combat social isolation, which is a key trigger for mental and physical health problems. According to a NIVEA study, $86 \%$ of participants feel that isolation is an increasing challenge. Young people between the ages of 16 and $24(34 \%)$, and heavy social media users (27\%) are particularly affected. By 2026, we will be supporting projects in 40 countries to raise awareness of social isolation, help reduce the stigma surrounding it, and provide information so that people can connect more meaningfully with each other. We also offer our employees support and stability - especially in difficult times: With the introduction of our global "Critical Illness Policy," we are there for them if they fall life-threateningly ill. The policy allows affected employees to focus entirely on their recovery without having to worry about their job or financial security.

tesa

tesa SE (hereinafter "tesa") is one of the world's leading manufacturers of innovative adhesive tapes and self-adhesive product solutions for industry, commercial customers, and end consumers. A wholly owned affiliate of Beiersdorf Aktiengesellschaft, tesa SE is an independently managed subgroup that operates as the direct or indirect parent company of 57 tesa affiliates (previous year: 60) with 5,405 employees (previous year: 5,189). As of December 31, 2024, tesa therefore employed $4.2 \%$ more people than in the previous year. There were 2,685 employees in Germany (previous year: 2,579), which corresponds to a share of $49.7 \%$ (previous year: $49.7 \%$ ).

Regions and Significant Locations

tesa operates worldwide, with its main focus on Europe, followed by the business regions of Africa/ Asia/Australia and the Americas. The company headquarters with integrated technology and product development and a pilot center are located in Norderstedt near Hamburg, Germany. In addition to the German locations, the affiliates in China and the USA are among tesa's largest and most strategically important single companies. The most relevant production locations are in Europe (Germany and Italy), North America (USA) and Asia (China and Vietnam).

Industry

In its Industry division, tesa supplies specialized product and system solutions directly to industrial customers in the automotive, consumer electronics, printing and packaging, and electrical systems sectors. The strategic focus is primarily on developing and expanding profitable business fields in technologically advanced fields of application. tesa's product and system solutions are used to optimize and enhance the efficiency of production processes, as fastening solutions in construction-related applications - often with additional functions beyond the mere bonding of components - and as customized protection and packaging systems.

In addition to direct business, the Industry division also includes industrial trade. tesa offers a diverse range of products for a broad spectrum of applications in various industrial sectors through trading partners. These include assortments for assembly and repair, transport safety tapes, and adhesive solutions for the packaging industry.

Consumer

The Consumer division covers the markets in which tesa supplies end consumers with market-driven products via retail partners or retail-like channels. These include product ranges for private end consumers and craftspeople. In addition, tesa uses its e-commerce business to offer products for sale directly to end consumers.

The Consumer business is focused on Europe and Latin America. It sells both long-established and new product solutions intended for various applications, including for daily use in offices, at home, and in crafts. Consumers can find a wide range of innovative products under the tesa ${ }^{\circledR}$ umbrella brand in hardware and stationary stores, superstores, and online. For professional craftspeople, tesa offers customized product ranges that are offered via marketing concepts tailored to specific target groups.

Management and Control

The Executive Board manages the company and is committed to sustainably increasing the company's value. In addition to the functional areas of responsibility within the Executive Board, there are regional areas of responsibility. The Executive Board is closely involved in the company's operational business, particularly through the allocation of responsibilities for the regions and markets. A breakdown of the Executive Board's areas of responsibility can be found in the "Beiersdorf AG Boards" section of the notes to the consolidated financial statements. The tesa Business Segment is managed as an independent subgroup.

Information on the remuneration of the Executive and Supervisory Boards, including incentive and bonus systems, is provided in the "Remuneration Report." The Combined Management Report also contains the Corporate Governance Statement for Beiersdorf AG and the Group in accordance with $\S \S$ 289f, and 315d Handelsgesetzbuch (German Commercial Code, HGB), which is also available to the public on the company's website at www.beiersdorf.com/investor-relations/corporate-governance/ corporate-governance-statement.

Value Management and Performance Management System

The aim of Beiersdorf's business activities is to sustainably increase the company's market share in terms of qualitative growth while simultaneously expanding its earnings base. This is the basis for the longterm key performance indicators, namely organic sales growth ${ }^{2}$ in conjunction with market share development and EBIT or the EBIT margin before special items (ratio of EBIT to sales). The aim is to generate internationally competitive returns through continuous investment in growth opportunities, such as white spaces, systematic cost management, and the highly efficient use of resources. The development of the relevant key performance indicators can be found in the "Results of Operations" section. In the 2024 financial year, there was no change in the key financial performance indicators compared to the previous year.

The company has created an efficient management system in order to achieve its strategic goals. Corporate management derives the corporate planning targets for the individual units for the coming year from the Group's strategic objectives. This planning covers all segments and affiliates. The Group's planning for the following year is generally approved by the Executive Board and Supervisory Board

[^0]
[^0]: ${ }^{2}$ Organic sales growth is the nominal sales growth adjusted for exchange rate effects and structural effects from acquisitions and divestments.

towards the end of the year. In specific cases the planning is not finalized until the beginning of the financial year in view of current developments.

Over the course of the financial year, the current development of the key performance indicators is regularly compared with the expected values and the current forecast for the year as a whole. These comparisons are used to manage the business in line with the objectives.

The tesa Business Segment forms a separate, independent unit within the Group. It is also managed by reference to the key performance indicators of organic sales growth and operating result (EBIT) or EBIT margin before special items.

Research and Development ${ }^{3}$

Our research and development (R\&D) are Beiersdorf's innovation driver and thus the key to our success. Our innovation power is embedded in our corporate DNA - and enables us to anticipate and satisfy the expectations of our consumers with groundbreaking innovations on an ongoing basis. Our recipe for success is to combine our scientific expertise with trendsetting technologies. We likewise evaluate and add to our research activities regularly.

We formulate clear focus areas with different priorities for every business segment:

• In the Consumer Business Segment, we create impactful skin care innovations. A sound knowledge of skin and our consumers is always at the heart of our innovation endeavors.
• In the tesa Business Segment, we are pressing ahead with the development of innovative adhesive tapes and self-adhesive system solutions. Our adhesive solutions help to improve the work, products and lives of our customers.

As at December 31, 2024, 1,841 people were employed in research and development at Beiersdorf worldwide (previous year: 1,686). Of this total, 1,165 (previous year: 1,026) worked in the Consumer Business Segment and 676 (previous year: 660) in the tesa Business Segment.

We once again increased our expenses in research and development as compared with the previous years. At the end of the financial year, the investment volume amounted to $€ 354$ million (previous year: $€ 320$ million), up $10.4 \%$ on the previous year's figure. Of this total, $€ 270$ million ( $+12.1 \%$ ) related to the Consumer Business Segment and $€ 84$ million ( $+5.4 \%$ ) related to the tesa Business Segment.

Consumer

Outstanding Skin Care Research

Skin care expertise and science are crucial throughout our innovation process. They are the foundations on which our claim to be a leading skin care innovator is based. We invented modern skin care in 1911 with the world's first stable water-in-oil emulsion - and have been setting new standards ever since. Thanks to our scientific know-how, we are gaining an ever greater understanding of the complex processes of the skin, enabling us to develop our own characteristic ingredients that work with it whether this be Q10, our first anti-aging skin care ingredient, Thiamidol ${ }^{\circledR}$, the effective active ingredient to combat hyperpigmentation, or Epicelline ${ }^{\circledR}$, the first epigenetically active ingredient that turns back the skin cells' age clock. With our focus on the field of microbiome research, we are working towards the next milestone in terms of skin health.

[^0]
[^0]: ${ }^{3}$ All figures related to employees in this chapter are presented as full-time equivalents (FTE).

Once again, we achieved relevant results with our intensive research work in the reporting year:

• We managed to deliver a groundbreaking anti-aging innovation in epigenetics based on over 15 years of research expertise. This area of life sciences describes the potential impact of our lifestyle and the environment on our cell functions, and thus also on skin aging mechanisms. For us, epigenetics is key to the development of relevant innovative skin care approaches aimed at substantial skin rejuvenation. With the aid of our skin-specific age clock technology patented in 2021, we succeeded in identifying Epicelline ${ }^{\circledR}$, our first active ingredient capable of positively modulating the skin's epigenetic pattern: the biological processes in skin cells are reactivated to improve the way they function. Epicelline ${ }^{\circledR}$ thus manages to turn back the skin cells' age clock and reverse the signs of skin aging. In the financial year just ended, we launched the new Eucerin Hyaluron-Filler Epigenetic Serum - the first product containing our epigenetic active ingredient Epicelline ${ }^{\circledR}$. Please see the "Product highlights" section for details. Details of the latest generation of our skin-specific age clock were published in a renowned scientific journal in the reporting year. With the aid of a biological sample, this second-generation age-clock technology enables us to accurately determine phenotypic aging, by which we mean the visual age of a person's face, as well as the skin cells' age clock, and to link this directly to the skin's epigenetic pattern. The DNA methylation patterns of over 370 participants were analyzed with a view to accurately predicting skin aging characteristics and gaining new insights into skin aging mechanisms.
• We also continued research into our patented active ingredient to combat hyperpigmentation, Thiamido ${ }^{\circledR}$, in the 2024 financial year. To date, the high effectiveness of products containing Thiamido ${ }^{\circledR}$ has been proven in over 110 in vivo studies involving more than 8,500 participants of all skin types. These findings have been the basis for numerous scientific publications. They demonstrate that all types of acquired hyperpigmentation can be treated with Thiamido ${ }^{\circledR}$, including facial melasma, age spots on the arms and hands and post-acne marks. The crucial factor is that the active ingredient tackles the root cause of the problem, inhibiting tyrosinase, the enzyme in the skin cells responsible for melanin production. We achieved a special milestone in our Thiamido ${ }^{\circledR}$-related endeavors toward the end of the financial year, when the active ingredient was approved in China by the country's National Medical Products Administration (NMPA). This approval serves as further evidence of our pioneering spirit and innovative capability - and gives us access to one of the most important strategic growth markets for our "Win with Care" strategy. Since 2021, Chinese consumers had only been able to obtain the active ingredient via crossborder e-commerce. The regulatory market approval of Thiamido ${ }^{\circledR}$ in China marks the first step on the road to full approval of the end products for sale in China's domestic market.
• Skin microbiome research is another major focus for us, and we have been working intensively in this field for many years with the primary objective of restoring the skin's balance and helping consumers with acne-prone skin in the long term. The special relevance of this field of research is underscored in particular by the fact that acne is one of the most frequently diagnosed conditions by dermatologists, affecting around one in five people aged 16 and over. The Belgian company SBiomedic, which we acquired in 2022, is an important strategic partner. Our objective is to be able to offer innovative skin care products designed specifically to restore the balance of acne-prone skin in the future.

• We continued research into our innovative anti-aging active ingredient coenzyme Q10, first launched on the market 26 years ago, in the reporting year. The combination of three sophisticated microscopic technologies - fluorescence lifetime imaging microscopy (FLIM), electron microscopy (EM), and scanning transmission electron microscopy (STEM) - enabled us to make the cell energy stimulating effect of Q10 on skin cells visible. The results, achieved as part of a research collaboration with University Clinic Ulm, were published in the scientific journal Frontiers in Bioscience-Landmark in the reporting year.

• We developed another innovative anti-aging product in the reporting year in the form of the antiglycation ingredient NAHP ( N -acetyl-L-hydroxyproline). Following some ten years of research, a Beiersdorf team succeeded in unraveling the secret of the skin's so-called glycation process and, after testing around 1,700 substances, identified an active ingredient to combat skin aging, which can also be induced by sugar, in the form of NAHP. Glycation is a naturally occurring chemical reaction that occurs when sugar molecules bind to proteins or lipids. It results in the formation of advanced glycation end products (AGEs), which weaken the skin's collagen and elastin fibers and can cause it to lose its elasticity and resilience - a major contributing factor in the increased formation of wrinkles. NAHP combats this process by neutralizing sugar molecules before they bind to proteins or lipids, thus potentially damaging the skin. Beiersdorf has published a number of scientific articles on this active ingredient. The reporting year saw the launch of a new anti-aging product containing NAHP: the innovative formula of the NIVEA Q10 Dual Action Serum combines GLYCOSTOP® with the anti-wrinkle ingredient Q10. Please see the "Product highlights" section for details.

• The development and acceptance of modern testing methods that do not entail the use of animals to assess safety have been an important part of our research work for over four decades. Our efforts here are aimed at proving the safety of our ingredients and products and paving the way for new industry standards. We achieved particular success with the development of a 3D reporter skin model in partnership with the Fraunhofer Institute for Interfacial Engineering and Biotechnology (Fraunhofer IGB). This model enables chemical substances to be tested for toxic effects on 3D cell culture models quickly and accurately, without using anything of animal origin. This new development marks a significant step forward in the field of alternative testing methods: it plugs existing gaps as regards their application options and offers considerable benefits in terms of their informative value. The new model can be used to investigate sensitizing substances, which are substances that can cause a reaction (also allergic in nature) in contact with the skin from cosmetics via pharmaceuticals all the way to paints and detergents. These research results were released at the start of the year in a joint publication in the journal Toxicology. We also received the Hamburg Research Award for Alternatives to Animal Testing for the reporter skin model. But we are not resting on our laurels: with the help of project funding from the International Collaboration on Cosmetics Safety (ICCS), we are now aiming to validate the reporter skin model as a standardized and recognized alternative method. Beiersdorf is a founding member of the ICCS, a globally active initiative comprising over 35 cosmetics manufacturers and suppliers, associations, and NGOs with the common goal of boosting the acceptance of testing methods that do not involve the use of animals to assess the safety of cosmetic products at global level.
• The safety and quality of our products are of paramount importance to us. We achieved an important milestone in our R\&D health care departments with the overarching realignment of our health care products, involving the transition from the European Medical Devices Directive (MDD) to compliance with the considerably more stringent requirements of the new Medical Devices Regulation (MDR). For us, this entails maintaining the highest standards in terms of product safety and quality. The objective of the new EU regulation is to enhance patient safety by intensifying analyses prior to bringing products onto the market, improving monitoring in the wake of market launch, and imposing more stringent requirements with regard to clinical evidence - all with a view to ensuring that medical products comply with modern standards in terms of safety, quality and innovation. The successful realignment entailed the revision of our technical documentation, updating of risk management processes, and implementation of additional clinical evaluations to ensure that all products comply with the more stringent classification criteria. Not only does this ensure compliance with the latest EU legislation, but it also underscores our commitment to the provision of safe, effective, and reliable products for our consumers around the globe.

At Beiersdorf, we use global patents to protect the results of our research and development and our intellectual property. During the 2024 financial year, we filed over 90 new patent applications (previous year: 60). As of December 31, 2024, our global patent portfolio comprised a total of 1,638 active patents (previous year: approximately 1,500). Approximately 800 patent applications (previous year: 600) were in the ongoing grant procedure as of the reporting date. These figures clearly demonstrate that we were able to significantly enhance our innovative strength compared to the previous year. At the same time, we advanced the geographical expansion of our patent portfolio through our new patent strategy, which was adopted in 2024.

Sustainability as a Source of Innovation and Growth

Sustainability is firmly anchored in our innovation work and is something that we systematically promote through intensive research, often undertaken in collaboration with strategic partners and suppliers. We believe that our products should not only meet the highest standards in terms of safety, quality, and effectiveness, but should also help build a better future. Our aim is to minimize our environmental footprint and maximize our positive contribution to society. As such, product innovation and the ability to adapt ingredients, formulas, and packaging are key elements. With this in mind, we are pushing ahead with efforts to transform our entire brand and product range, working intensively to make every (existing) product as sustainable as possible.

We follow the four key principles for sustainable packaging, namely "avoid, reduce, reuse, and recycle." Specifically, that means preferably using more sustainable, biodegradable, and renewable materials, and incorporating recycled raw materials wherever possible. We also strive to reduce material usage, while also using alternatives to fossil-based virgin plastics. We are making these efforts with a view to building our vision of a circular economy in line with our R\&D sustainability pledge and our CARE BEYOND SKIN sustainability agenda. We have set ourselves ambitious packaging targets, which are explained in detail in the "Non-financial Statement."

Besides packaging, the ingredients we use to manufacture our skin care products are an important lever in helping to reduce our environmental footprint and boost the circularity of our products. Our aspirations in the area of sustainability demand that we regularly update our raw materials strategy and work continuously on the formulation of our products. The use of artificial intelligence (AI) and the introduction of digital workflows in the laboratory help us to do this. AI-supported findings enable us to adapt formulations so that they can be produced on the basis of an effective combination of ingredients, while at the same time offering other compelling benefits.

Collaboration Promotes Innovative Strength

A feature of Beiersdorf's international success is strategic collaboration between experts proven in their field. We are convinced that relevant and transformative innovations emerge at the interfaces between disciplines and expertise, producing creative new ideas that go beyond the status quo. In this tradition, we selectively combine external knowledge with our own in-house expertise and use this complementary know-how to jointly set new standards in skin care. In the reporting year, our global collaboration network comprised numerous partners, including renowned research institutes, universities, start-ups, independent scientists, and suppliers.

One example of our commitment to research is the strategic partnership we entered into with US biotech company Rubedo Life Sciences in the reporting year. The collaboration focuses on research into and validation of novel, anti-inflammatory, and senolytic ingredients that specifically target cellular senescence and the elimination of senescent cells [from the Latin senescere = to grow old, age]. Senescent cells accumulate with age and release inflammatory messengers, which may contribute to age-related skin changes and disorders. Together, we want to develop targeted interventions that not only rejuvenate the skin, but also tackle the fundamental characteristics of aging. We see great potential

to further improve our understanding of the cellular aging process and thus develop innovative solutions for skin rejuvenation in this initiative. In addition to the partnership, we also joined Rubedo as a strategic investor. Through our Oscar \& Paul Corporate Venture Capital Unit, we participated in the latest Series A funding round.

In addition, we entered into an important multi-year partnership with US biotech start-up Macro Biologics in the field of antimicrobial research. Our collaboration will focus on using Macro Biologics' highly effective and biodegradable antimicrobial peptides - known as amicidins - in our product and formula development. As amicidins are effective against a wide variety of bacteria, they can help to alleviate skin irritations and improve the complexion; moreover, they are designed for early, local application in the prevention of wound infections. The joint objective is to create highly effective, safe, and sustainable solutions for a variety of application areas across Beiersdorf's brand portfolio, primarily in dermatological skin care and injury care. In this way, we are once again underscoring our aspiration to offer revolutionary, sustainable innovations on an ongoing basis. Here too, in addition to the strategic partnership, we are investing in Macro Biologics through our Oscar \& Paul Corporate Venture Capital Unit.

In the reporting year, we expanded our strategic alliance with the renowned German Cancer Research Center (DKFZ). A new research collaboration will see both parties pursue the common goal of improving skin cancer prevention. Together, we want to drive forward the development of nextgeneration sun protection solutions, educate the public on the correct way to use sun protection, and establish a joint advisory service for the prevention of skin cancer at the DKFZ. With a projected term of at least three years, the collaboration has a joint research budget of $€ 3.6$ million.

Another partnership forged in the reporting year involved the Swiss medical technology company Hamilton Bonaduz. The aim of the collaboration is to maximize efficiency and effectiveness in respect of the generation of microbiological in vitro product claims and the identification and qualification of antimicrobial agents, with the aim of boosting our innovative capacity. The partnership saw Hamilton Bonaduz automate our modern microbiological methods by transferring them to a new, highperformance robotic platform. This is enabling us to standardize the partial/full automation of microbiological tests from the ingredient to the final formula, in solution, or in vitro on biological surfaces. Microbiological automation is an important step for us along the road toward improving the quality and quantity of data, paving the way to predicting in vivo product performance based on in vitro data using digital tools such as AI. In the future, the collaboration with Hamilton Bonaduz will be extended to include the automation of cell biological or biotechnological processes.

New partnerships were secured with several universities in the financial year, too. Our research alliance with Coburg University of Applied Sciences aims to further investigate the complex biological processes involved in skin aging. With the help of omics data - the analysis of thousands of molecular characteristics such as proteins and metabolic products - we want to shed light on the metabolic processes that play an important role in skin aging. The findings will be used to develop even more effective product solutions for skin rejuvenation in the future.

At the end of 2024, we entered into an important research collaboration with Columbia University based in New York, USA. Projected to run for five years, this cooperation is being funded by Beiersdorf with up to $€ 1$ million per annum. The particular fields of research are "aging" and "skin of color"; working groups at Columbia will be able to submit project proposals, the most promising of which will subsequently receive funding. A pilot project has already been launched to establish and characterize a novel in vitro skin wrinkle model.

In 2024, in collaboration with our long-standing research partner Marche Polytechnic University in Ancona, Italy, we developed a professional development program that pairs our own expertise in skin

research with the university's Institute of Life Sciences. Launching in May 2025, this course will provide students with a profound understanding of skin science, along with the skills and abilities relevant for a successful career in skin science. Each year, up to 12 students will initially receive theoretical training in skin science in the form of four courses at the university, the topics being Introduction to Skin Biology and Skin Aging, Redox Biochemistry of the Skin, Senescence and anti-aging, and Experimental Models/ Photoprotection/Cosmeceuticals. Thereafter, students will undergo a period of consolidation in a threemonth practical phase in Beiersdorf's biological testing department. Upon successful completion of the program, students will receive a certificate from the university.

Strong Research Network

We firmly believe that the global presence of our research and development is a major contributor to our business success. This strong research network allows us to set different research priorities in different places around the world and to learn through close dialog with one another. At the same time, the different locations allow us to get much closer to the specific local and regional needs of our consumers. Our consumer-centric approach is guided by the "jobs-to-be-done" (JTBD) method, whereby we focus not only on consumer needs, but also on the "jobs" these consumers want our products to do for their skin.

The largest site in our global research and development network is our skin research center in Hamburg. Germany, where we primarily undertake important application-oriented research. Here we employed a total of 857 people (previous year: 757) as at December 31, 2024. Our stated goal is to use research as a means to improve our understanding of the biological processes at work in the skin and based on these findings and with the aid of new cutting-edge technologies such as Al - develop new and innovative solutions targeted at consumers' needs, while always taking the sustainability of our formulations and packaging into account.

The Beiersdorf Study Center is a central part of our skin research center in Hamburg, Germany. It is the means by which we ensure that each new product meets our exacting standards in terms of quality, safety, and compatibility, complementing the tests that external institutes carry out on our behalf prior to every market launch. The Study Center has more than 30 rooms and covers an area of some $1,800 \mathrm{~m}^{2}$. The study designs and measurement methods vary greatly. "Hot rooms", for example, are used to test the reliability of deodorants, while the "black room" is where we aim to detect ultra-weak photon emissions. In turn, we use laser microscopy to investigate the effect of skin-smoothing products. Also, the entire Study Center is equipped with an air-conditioning system that enables temperature and humidity parameters to be precisely maintained and solar radiation to be simulated. In the reporting period, we carried out around 500 studies with some 10,200 participants (previous year: around 300 studies with some 8,500 participants) at the Hamburg Study Center. Externally, in 2024, we conducted another around 1,420 studies with some 40,600 participants (previous year: around 700 studies with some 20,000 participants).

In addition to our globally significant skin research center in Hamburg, our global research and development network includes two further large innovation centers in China (Shanghai) and the USA (New Jersey), as well as development laboratories in Brazil, India, and Japan. These different locations enable us to better address local cultural, aesthetic, and climatic conditions and develop products that correspond to local needs and preferences. Through this network we can also participate in global innovation and have access to local talent, providing valuable ideas and insights for our research and development work.

With a workforce of around 90, our innovation center in Shanghai, China covers an area of around $7,500 \mathrm{~m}^{2}$, making it our second largest, and was opened in July 2020. Here, we focus on developing premium face care and environmentally friendly, high-performance products for the Asian market, and on accelerating development processes through digitalization and Al. In the reporting year, the

innovation center made significant strides in implementing the innovation strategy for China, a particular milestone being the development of the NIVEA LUMINOUS630 Professional Anti-Spot MultiBrightening Super Serum. Launched online in the Chinese market in April 2024, it aims to further leverage the considerable potential for products that brighten the skin's tone. To position Beiersdorf as a leading innovator in the field of hyperpigmentation, highlight the launch of the serum, and pave the way for Thiamidol ${ }^{\circledR}$ as an outstanding ingredient for brightening skin tone in China, the team at the innovation center in Shanghai hosted a scientific symposium for the first time. Leading experts from Germany, China, Thailand, South Korea, and the USA discussed the social impacts of ingredient innovations, and the latest methods and findings gleaned from skin science research. And at the China International Import Expo (CIIE) in Shanghai - the most important import trade fair in China - we had the opportunity to provide valuable insights into our innovation work.

Our innovation center in Florham Park, New Jersey, USA, which opened in 2022, places particular emphasis on clinical research and the development of local product innovations for the Eucerin and Aquaphor dermocosmetic ranges, as well as for the OTC sun protection brands Coppertone and Eucerin Sun (OTC = non-prescription drugs under US regulations). The team of around 50 employees continued to showcase Beiersdorf's formulation expertise in the reporting year, focusing specifically on the development of completely new formulations that have an extremely aesthetic look and feel, as they are particularly light, transparent and easy to apply. An application study featuring over 300 participants confirmed the good sensory properties of the newly developed Eucerin eczema line (Eucerin Eczema Relief) with its ultra-light hydrogel formula. In addition, a transparent and easy-to-apply gel (Coppertone Invisible Finish SPF55) was developed and launched under the Coppertone sun protection brand. Working closely with the other innovation centers around the world, the US team continues to expand its skill set, especially focusing on Al-based tools and biomedical measurement instruments to deliver even better product claims and performance to our consumers.

Digitalization and Artificial Intelligence

Underpinned by digitalization and trendsetting technologies such as Al, skin care expertise and science are the central pillars of our innovation process. This interplay enables us to continuously optimize our processes, speed up the development of innovations, and push the boundaries of skin science and skin care ever further. As well as allowing us to develop even more effective and sustainable formulas more and more rapidly, these innovative technologies also play a crucial role in terms of consumer proximity and the development of packaging solutions. Our activities in the reporting year emphasize how we are further strengthening our position as one of the leading innovators in the sector.

In this context, we revised our R\&D technology strategy in the reporting year to ensure that we adapt to the rapidly evolving technological landscape. By aligning our efforts with global market trends, we want to continue our sustainable growth while securing a competitive edge in what is an increasingly dynamic operating environment in line with our "Win with Care" strategy.

A particular example of digital transformation in our laboratories is our "Future Lab" program. By integrating Al and implementing digital workflows, we are constantly optimizing and accelerating our formulation development processes, enabling us to develop products that are even more sustainable, while maintaining the same high level of effectiveness and quality. With the help of Al-supported findings, our experts are able to fine-tune combinations of ingredients to deliver targeted benefits, whether this be depth of hydration, anti-aging effects, support of the skin barrier, or a blend of particularly sustainable ingredients. Progressive technology such as this enables us to focus on creative breakthroughs that meet the unique needs of the skin.

As already mentioned in this chapter, 2023 saw us install an innovative robot platform at our skin research center in Hamburg, Germany, that enables us to standardize the partial/full automation of microbiological tests, allowing us to better predict product performance in vivo. And at our innovation

center in Shanghai, China, we rolled out StAR (Stability Automation Robot), a state-of-the-art robot that allows us to perform important viscosity, consistency, and pH tests efficiently. The robot automates stability tests, guaranteeing both precise and consistent measurement results. It is part of a comprehensive digitalization system in research and development that uses automation and Al to optimize the testing of formulas. This makes conventional stability tests more efficient, more precise, and easier to scale.

And the journey continues in the area of "Future Testing": at our Hamburg Study Center, for example, we introduced our innovative Al-controlled wrinkle analysis wrinkle.ai as a standardized test procedure in the reporting year. The software enables precise three-dimensional characterization of wrinkles at the corner of the eye, based on a database of 3.4 million measured topography data points. All wrinkles within the defined measurement range are automatically analyzed. The evaluated results provide a robust basis for the statistical analysis of the effectiveness of anti-wrinkle products. At the heart of the system is an internally developed Al algorithm that uses modern analysis methods to independently process comprehensive study data and evaluate it overnight. This helped us, for example, to measure the effectiveness of the innovative Eucerin Epigenetic Serum. Thanks to a combination of precise data capture and Al-supported analysis, the tool delivers relevant results for cosmetic research and product development. The methodology not only permits a detailed analysis of individual skin features, but also creates a basis for evaluating and optimizing new product formulas.

Another example of our increasing digitalization of research and development processes is an explorative study on skin of color. In our development laboratory in India, we have established an approach that provides us with insights into the emotions shown by our consumers as they experience our products. In addition to interviews, images are automatically taken at the point where the consumer evaluates the product to capture facial expressions, for example. These allow us to gain a deeper insight into product use.

We made excellent progress with our Al-powered skin study SKINLY in the reporting year, too. Launched in 2019, this project is a large-scale skin study involving consumers worldwide. A key aspect of this initiative is the active participation of consumers through innovative tools, including a special digital measuring device with three different light sources and a special app. Participants submit current data on more than 80 parameters up to twice a day. These include individual skin properties (e.g., skin age, wrinkle depth, skin tone, complexion, and impurities) as well as information about the individual's lifestyle (e.g., sleep, nutrition, menstrual cycle, and environmental conditions), the skin care products used, and external environmental factors. The results help us to understand our consumers and their skin as well as the variables that influence them, and to draw lessons for our product development. The more high-quality data is available, the better our data scientists will be able to translate this into relevant, actionable new knowledge for our research, development, and marketing. What's more, thanks to Al-based machine learning, the SKINLY ecosystem created for the study learns something new with every measurement. More than 20,000 participants aged between 18 and $80+$ from over 60 countries have already taken part in the SKINLY study to date. Around one billion data points have been measured and more than 120 million high-quality skin images generated. To broaden our understanding of key areas of research, the study specifically targets groups with significant UV and environmental exposure, allowing us to see exactly how these factors affect skin aging. In order to expand the algorithm using valid data for melanin-rich skin types and to take better account of the diversity of phototypes, we expanded the SKINLY study to include the USA in the reporting year, focusing on participants with Hispanic and African American backgrounds.

Product Highlights ${ }^{4}$

We aspire to create impactful and sustainable skin care innovations that touch people's lives. For this reason, we are continually pushing the boundaries of skin science as the basis for the ongoing development of new products for all our brands that raise skin care to a new level. This strong culture of innovation, which has long been a distinguishing feature of the company, ensures that our innovation pipeline is well filled year after year. These innovations include innovative product packaging as well as new cosmetic formulations.

The following overview shows a selection of our most important innovations during the reporting year:

• One of our biggest innovations achieved in the financial year just ended was the NIVEA Q10 AntiWrinkle Expert Dual Action Serum. The innovative formula with the new active ingredient GLYCOSTOP® ${ }^{\circledR}$ and pure coenzyme Q10 prevents skin aging, which can also be induced by sugar. It also visibly reduces existing wrinkles within two weeks. The product's active ingredient GLYCOSTOP® has a direct impact on skin saccharification by reducing the glycation process, in which advanced glycation end products (AGEs) are formed, by up to $68 \%$ (in vitro), thereby protecting the skin's connective tissue fibers and preserving its firmness and elasticity. The product is based on a light, non-greasy formula and complies with the highest sustainability standards. The formula is free of silicons, mineral oils, and non-biodegradable polymers, while the packaging is made of recycled glass and can itself be recycled.
• We also launched two additions to our NIVEA UV series for the face on the market: the NIVEA Sun UV Face Expert Derma Skin Clear UV Fluid SPF 50+ and NIVEA SUN UV Face Expert Invisible Daily UV Fluid SPF 50+. The ultra-light, non-greasy care formula of the Derma Skin Clear UV Fluid mattifies the skin by absorbing excess oil from its surface without blocking the pores. The formula with Licochalcone A and a sun protection factor of $50+$ activates the skin's own defense mechanisms to protect it from oxidative stress caused by UV/HEVIS light. The ultra-light, nongreasy Invisible Daily UV Fluid with niacinamide was developed for all skin types, even sensitive skin, ensuring an 8 -hour anti-shine effect and a visibly matte complexion. The formula also leaves the skin feeling soft and looking healthy.
• In the reporting year, we introduced the new NIVEA LUMINOUS630 Anti-Dark Marks CC Fluid 3-in-1, a comprehensive solution for an even skin tone. The fluid hides dark marks and ensures a natural-looking finish, while reducing dark spots and blemishes over time. Enriched with the patented active ingredient Thiamidol ${ }^{\circledR}$ and hyaluronic acid, the formula is available in three shades and adapts to over 60 skin tones thanks to its micro-encapsulated color pigments.
• The two new Serum Infused NIVEA Micellar Waters mark the first time that NIVEA has offered micellar water products with an added serum phase. This provides extra care for the skin directly after deep cleansing, which is the moment when the active ingredients are best absorbed. "Skin Glow" ensures radiant skin, while "Regeneration" is the perfect preparation for overnight skin regeneration.
• We have completely overhauled the NIVEA Body Lotion range, which now offers improved care properties and optimized formulas. The new formulations - including some featuring natural oils and the ingredient hyaluron with its incredible water-binding capacity - provide intensive and long-lasting skin hydration. With a view to reducing plastic waste, the new packaging now comprises $50 \%$ recycled plastic and also weighs $20 \%$ less thanks to extensive material savings.

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[^0]: ${ }^{4}$ This section of the Combined Management Report is not subject to audit requirements.

• We undertook a comprehensive relaunch of our NIVEA MEN Shower Gels, featuring a new, iconic 3D bottle shape made from 100\% recycled material: the more sustainable formula, which is $99 \%$ biodegradable with $100 \%$ plant-based moisturizers, leaves skin feeling stronger, hydrated and visibly healthy. An $18 \%$ reduction in packaging weight and a more sustainable bottle cap design ( $100 \%$ PCR content, $45 \%$ lighter) have reduced waste quantities considerably and boosted the eco-friendliness of the shower gel series.
• After 15 years of epigenetic research, we launched a revolutionary anti-aging innovation in the form of the Eucerin Hyaluron-Filler Epigenetic Serum in the reporting year. It contains the active ingredient Epicelline ${ }^{\circledR}$ identified using our patented skin-specific age-clock technology: this turns back the skin cells' age clock by reactivating dormant youth genes. The product formula is enriched with hyaluronic acid, glycine saponin and enoxolone to reverse ten signs of skin aging, resulting in firmer skin, reduced wrinkles, and enhanced facial contours - for a clear lifting effect and a more youthful appearance.
• The reporting year also saw the relaunch or overhaul of a number of products from our Eucerin AtopiControl range, the skin care range for atopic dermatitis (eczema). The calming AtopiControl Ultra-Light Hydro Lotion is the new product in the series. The ultra-light formula is absorbed in under 60 seconds, leaving a pleasant cooling sensation and noticeably soothing itching. It provides a moisturizing effect that lasts for 48 hours, thus supporting daily care for eczema-prone skin. We have optimized other products in the series with an eye to sustainability. The adapted formulas contain proven ingredients such as Licochalcone A, decandiol, NMFs, shea butter, ceramides and omega oils to strengthen the skin barrier, soothe itching and reduce inflammation. Thanks to this relaunch, which included optimization of the product packaging, AtopiControl now offers an effective and more sustainable solution to consumers with atopic skin.
• We also extended and optimized our successful Eucerin Anti-Pigment care range. In addition to individual local product innovations, we introduced Eucerin Anti-Pigment Cleansing Gel in the reporting year - a product that boosts the effectiveness of the anti-pigment active ingredient Thiamidol ${ }^{\circledR}$ with its exfoliating AHA acids. The gentle formula leaves skin radiant and evens out skin tone. Existing products in the Anti-Pigment range have also been overhauled from a sustainability perspective. Synthetic polymers have been replaced with biopolymers in the new formulas, while retaining a high level of sensory performance and effectiveness.
• In the reporting year, we launched the Hidrofugal FORTE OVERNIGHT Roll-on, a highly efficient antiperspirant whose long-lasting effect is built up overnight. Its specially developed dual-action formula with zinc combats odor and sweat efficiently and is twice as effective as deodorant application in the morning.
• In recent months, we introduced the latest and most advanced La Prairie formula to combat skin aging in the form of the Life Matrix Haute Rejuvenation Cream, which works to revitalize skin cells at molecular level. Life Matrix Cream boosts collagen synthesis, leaving the skin feeling firmer and more elastic with enhanced volume - and a visibly plumping effect.
• Another new product launched was Skin Caviar The Mist, a refreshing and smoothing face mist. Developed for the summer holidays, the La Prairie product boasts an ultra-fine emulsion texture and a fragrance-free formula that can be applied over make-up and sun protection for a dewyfresh effect. The Mist enriched with the characteristic caviar smooths, refreshes, and energizes the skin.

• Chantecaille, our prestige brand for botanical luxury skin care and cosmetics, launched its 24K Gold Cream Intense, a ceramide-boosted nourishing cream providing intensive hydration for dry or mature skin. It contains 24 -carat gold and advanced botanical ingredients to firm the skin and boost its luminosity.

• We also launched a new version of the Chantecaille Just Tinted Moisturizer. The new, moisturizing formula is infused with botanical ingredients and is formulated without cyclic silicones, solid microplastics, talc, fragrance, or parabens. Innovative botanical actives boost hydration and visibly smooth the skin. The relaunch also extended the shade range with four new shades to better match Chantecaille's diverse consumers.

As a result of our regional research and development activities, we also launched a series of local innovations on the market in the reporting year:

• The launch of the NIVEA LUMINOUS630 Professional Anti-Spot Multi-Brightening Super Serum in China addressed a local need of Asian women. Thanks to the patented active ingredient Thiamidol ${ }^{\circledR}$, the formula combats the problem of skin yellowing - which increases with advancing age - and the formation of dark spots thoroughly and effectively. The formula promotes an even complexion, while the new anti-aging ingredient NAHP halts the skin glycation process, thus preventing sugar-induced skin damage.
• We also launched the NIVEA Vitamin Body Serum for the Southeast Asian market via our development laboratory in India. It contains the ingredients glutathione, vitamin C and niacinamide, as does the NIVEA C \& AHA Body Serum, whose formula also contains alpha hydroxy acids to ensure that it penetrates deeply into the skin, which looks healthy and radiant as a result.
• We also developed the Eucerin Anti-Pigment Daily Body Lotion for the Asian market, thereby entering the anti-pigment skin care product market in the reporting year. The ultra-light, fastabsorbing formula with patented Thiamidol ${ }^{\circledR}$ reduces dark spots effectively, creating an even skin tone, while hyaluronic acid provides long-lasting skin hydration.
• We launched NIVEA MEN Anti-Age Hyaluron Moisturizing Cream SPF 30 in the USA. Its moisturizing formula with hyaluron and pro-retinol provides intensive hydration, reduces wrinkles, and visibly firms the skin.
• We also launched new products under the Eucerin brand in the USA: the new Eucerin Face Immersive Hydration series - comprising a serum, daily lotion, night cream and gel-cream - is the first major launch of Eucerin face care products in the USA and is thus instrumental in establishing this category at local level. Eucerin is the first brand on the US market to offer a series featuring both long- and short-chain hyaluronic acid across an entire category. The long-chain hyaluronic acid moisturizes the upper skin layer intensively, while the 40 times smaller short-chain hyaluronic acid penetrates deeper into the epidermal skin layers to plump fine lines and wrinkles. Other new local launches were the Eucerin Face Hydrating Micellar Water and Eucerin Face Hydrating Face Cleansing Gel, which ensure gentle, yet effective face cleansing. The micellar water combines micellar technology with hyaluronic acid, and the cleansing gel removes dirt, talc and make-up reliably yet gently, while supporting skin hydration.
• In our Brazilian development laboratory, we developed another shade in our established Shine Control range with the NIVEA SUN UV Face Shine Control Tinted Light SPF 50 especially for Mexico and Brazil. With its light colored pigments, this sun protection for the face ensures an even skin tone and a long-lasting mattifying effect.

tesal

Product and Technology Development

Technology developments for innovative adhesive solutions

In 2024, tesa continued to pursue a strategy of adding innovative and more sustainable products to the existing product range, the basis for which was laid down in technology development projects. Adhesive tape prototypes with new properties were developed for the growing global e-mobility market. For example, an innovative adhesive tape from tesa (tesa ${ }^{\oplus} 76730$ ) that can be used to seal battery boxes is being tested at a well-known automotive manufacturer. The special feature of this tape is that it can be debonded again during the application process, making it easy to correct errors. This reduces the reject rate in the production process and has a positive effect on costs and sustainability.

The trend towards miniaturization and individualization in electronics is giving rise to new challenges in joining technologies. Structural adhesive tapes can take over at the point where normal adhesive tapes reach their performance limits. A UV-activatable structural adhesive tape (tesa ${ }^{\circledR} 8684$ ) developed last year enjoyed initial commercial success in devices from the consumer electronics field, and this year served as a starting point for scaling up the underlying technology component. Further development engendered prototypes with significantly increased performance, enabling sampling in new applications with more stringent requirements.

Structural adhesive tapes are also sought after in the field of e-mobility. Through a cooperation agreement with a major battery manufacturer, we have succeeded in developing adhesive tape prototypes that meet the stringent requirements of selected automotive OEMs.

Debonding on Demand

One of the main focus areas when it comes to developing products is adhesive tapes with Debonding on Demand technologies, which can be debonded easily if required. This is a technology that contributes to sustainability. It has the potential to reduce the amount of waste, simplify recycling, and facilitate product repairs, and is fundamentally beneficial for the circular economy. New "right to repair" rules require manufacturers to make service life and repairability recognizable features of a product. Should an appliance develop a fault, it must be easy for the customer to remove/release adhesive bonds (debonding), so that the item can be repaired.
tesa works closely with partners and customers to develop tailored adhesive solutions with various debonding mechanisms. Adhesive tape samples are at an advanced stage of development for many applications, and the first of these have already been integrated in products. One such example is a further development of established tesa Bond \& Detach products that are already being used worldwide in smartphones, and are now also being tested for use in battery bonding. A large number of innovations have been created in the area of Debonding on Demand and these are protected in more than 50 patent applications.

Sustainability in raw materials and processes

While Debonding on Demand technology enables tesa's customers to repair and recycle products, thus boosting sustainability, tesa is also developing technologies for adhesive tapes that are based on more sustainable raw materials and thus likewise contribute to greater sustainability. Industrial Trade and Converting, for example, succeeded in rolling out a series of adhesive tapes with recycled PET. Products in which both the adhesive and the films and liners are manufactured from bio-based or recycled raw materials, such as tesa ${ }^{\circledR} 6066 x$ with bio-based adhesive and backing made from recycled PET, go one step further.

The foundations for new and more sustainable products have been laid in the area of adhesive solutions used to secure items during transportation, too, with the first new products already launched. tesa ${ }^{\circledR} 64295$ is a sustainable product. This adhesive tape is based on a solvent-free production process and features a bio-based content rating and a core made from recycled material.

The transformation to more sustainable products was pursued with vigor in the area of process and production technology, too. In 2024, for instance, we succeeded in completely eliminating the use of the solvent toluene at the Suzhou plant by adapting the adhesives accordingly.

Digitalization

Over the past year, tesa has further expanded its activities aimed at digitalizing and deploying process and measurement data to speed up the development of technologies, processes, and products. The first projects were completed in the areas of materials management and digital test planning. Moreover, the basis for digitally accessible and structured data was expanded. By using AI-based tools, the most appropriate existing tesa products to satisfy new customer requirements can be determined in a matter of minutes.

Processes are also being created in the area of product and technology development to speed up development by using intelligent tools that have access to development data. The simulation of product properties and creation of digital twins are becoming increasingly important. New, specific test methods have been developed in close collaboration with customers in order to qualify adhesive tapes for use in certain applications.

Automation

Innovative approaches to automation have made it possible to increase efficiency in some projects. The prospect of achieving a six-fold increase in efficiency in an automated polymerization plant compared to manual processes thanks to an intelligent design concept is particularly impressive. The findings from the pre-development phase are currently being implemented on a pilot scale.

Close collaboration in the field of automating customer processes with adhesive solutions has made it possible to offer a comprehensive range of product and process solutions. For instance, a system that automatically protects battery cells with adhesive tape has now been developed and patented. Also in the field of automation, another robot was commissioned at tesa to offer customers improved, integrated adhesive tape solutions for covering holes in the bodywork of motor vehicles.

Further information on product and technology development at tesa can be found at www.tesa.com/ en/about-tesa/product-and-technology-development.

Combined Non-financial Statement of the Beiersdorf Group and the Beiersdorf AG

General Information

ESRS 2 - General Disclosures

General Basis for Preparation of the Non-Financial Statement

With this statement, Beiersdorf provides information on material sustainability aspects within the Management Report. The Non-financial Statement (NFS) was prepared in accordance with §§ 289b ff. Handelsgesetzbuch (German Commercial Code, HGB) as well as 315b to 315c HGB and thus represents the consolidated NFS of the Beiersdorf Group and Beiersdorf AG as the parent company. Unless otherwise stated, the qualitative information regarding the Consumer business segment also applies to Beiersdorf AG. The results of the concepts for Beiersdorf AG are comparable to the presentation for the Consumer business segment.

Beiersdorf reports partially in accordance with the first set of the "European Sustainability Reporting Standards" (ESRS) as a framework for non-financial reporting in accordance with § 315c HGB in conjunction with § 289d HGB. This means that not all components of our NFS were prepared in compliance with the ESRS. An overview of all disclosure requirements included in the NFS is provided in "Appendix A." This shows which disclosure requirements have been fully or partially implemented.

Since the 2021 financial year, Beiersdorf has been reporting within the NFS in accordance with Article 8 of the EU Taxonomy Regulation on revenue, capital expenditures, and operating expenses associated with environmentally sustainable activities.

For our NFS with regard to Beiersdorf AG pursuant to § 289b HGB, we did not use a framework because a (at least partially ESRS-compliant) NFS for the group is relevant to our stakeholders.

The scope of consolidation of the NFS is the same as that for the Annual Report (see "Notes to the Consolidated Financial Statement") with the exceptions of our joint venture NIVEA-Kao, our majority shareholding 5-Biomedic and the Chantecaille, La Prairie and Coppertone brands. Deviations exist in chapters ESRS E1, ESRS E3, ESRS S1 and ESRS G1. The brands mentioned are partially included in the figures there. These discrepancies are explained at the appropriate points in the report.

In the process of the materiality assessment, impacts, risks and opportunities in own operations and along the upstream and downstream value chain have been considered. A detailed overview of the positive and negative impacts, financial risks and opportunities identified as material and their location in the value chain is provided in the section "Material impacts, risks and opportunities and their interaction with strategy and business model" and in the respective topical chapters. There are no material risks arising from our own business activities, or from our business relationships, products, and services, that are very likely to have severe negative impacts on the non-financial aspects pursuant to § 289c HGB.

Policies, actions, targets and metrics relating to the material topics are presented in the following chapters. Whether these concern own operations or the upstream and/or downstream value chain depends on the materiality assessment of the respective sustainability aspect and its location in the value chain.

The safeguard clause is not applicable; no information on intellectual property, know-how or results of innovation has been omitted.

Disclosures in Relation to Specific Circumstances

Changes in the preparation or presentation of sustainability information
Compared with previous periods, there were significant changes in the preparation and presentation of sustainability information in the management report during the 2024 reporting year. These concerned both the structure and the content of the NFS, which are now prepared partially in accordance with the ESRS. This means that Beiersdorf is already starting to implement the requirements of the framework in its business and reporting processes before the "Corporate Sustainability Reporting Directive" (CSRD) regulations are implemented into German law. Some of the metrics and information previously reported under environmental, social, and governance aspects have been supplemented or replaced by new disclosures required under ESRS. Any methodological changes resulting in adjustments to or recalculations of metrics (e.g. new scientific findings such as the "Intergovernmental Panel on Climate Change" (IPCC) reports) were performed in the current reporting period. This is explained at the appropriate point in the report.

Value chain estimation

We use estimates when calculating metrics in cases that extend beyond Group boundaries, such as Scope 3 emissions, as these involve complex and often indirect processes of data collection from our value chain. In-depth information on the methods used for these estimates is provided at the relevant points in the report.

The Role of the Administrative, Management, and Supervisory Bodies

As required by law in Germany for stock corporations (Aktiengesellschaften), Beiersdorf AG has a dual management and supervisory structure consisting of the Executive Board and the Supervisory Board.

Executive Board

Our Executive Board takes sole responsibility for managing the company and conducting the company's business. It performs its duties in the company's best interests and is dedicated to sustainably increasing the enterprise value. The members of the Executive Board are appointed by the Supervisory Board. An Executive Committee was established to support the operational control of the Beiersdorf Group's Consumer Business Segment. This comprises the members of the Executive Board and two individuals with global management functions.

The Beiersdorf Group Executive Board has seven members, in 2024 43\% of them were female (Astrid Hermann, Nicola D. Lafrentz, and Grita Loebsack).

Collectively, all members of the Executive Board must possess extensive relevant international experience aquired from years of working abroad or special expertise in our key international markets. Sector-specific knowledge is also required.

Primary responsibility for sustainability matters within the Executive Board lies with the Chairman of the Executive Board, Vincent Warnery, and Labor Director Nicola D. Lafrentz. Within the Executive Committee, Dr. Gitta Neufang (Chief Research \& Development Officer) and Michael Frey (Chief Supply Chain Officer) also have environmental, social, and governance (ESG) expertise. Dr. Gitta Neufang is also a sponsor of the Sustainability Council, the cross-functional management body for material sustainability matters in the Consumer Business Segment (see "ESG governance" section).

Supervisory Board

Our Supervisory Board comprises 12 members. In 2024

• $58 \%$ were female,
• $50 \%$ of shareholder representatives and $100 \%$ of employee representatives were independent within the meaning of the German Corporate Governance Code in the opinion of the Supervisory Board, and
• six members were employee representatives.

The Supervisory Board ensures that its members collectively have the knowledge, skills, and professional experience needed to perform their duties properly. In terms of their expertise, the members must collectively, in accordance with $\S 100$ (5) Aktiengesetz (German Stock Corporation Act, $A k t G$ ), be familiar with the sector in which the company operates; in addition, there must be at least one member with expertise and experience in each of the following specific areas:

• Business areas and sectors (consumer goods, beauty and skin/body care, international markets, including emerging markets)
• Marketing and Sales (brand development and management, distribution and retail, communication and media)
• Research and Development (R\&D), including innovation management
• Supply Chain (supply chains and production)
• Human Resources and Organization (personnel development and management, corporate organization, corporate culture, diversity)
• ESG (sustainability, corporate social responsibility, ethics)
• Law and Governance (law, compliance, auditing, regulatory law, corporate governance)
• Information Technology (IT) and Digitalization (digitalization, data management, IT and IT security)
• Finance (finance and controlling, accounting and auditing, each including sustainability reporting, risk management and internal control systems)

Donya-Florence Amer has been responsible for ESG matters within the Supervisory Board since 2024.
Further information on the composition and diversity of the Executive Board and Supervisory Board is provided in the "Corporate Governance Statement."

Compliance management

The Executive Board is responsible for establishing and monitoring an appropriate compliance management system (CMS). Both Business Segments, Consumer and tesa, have implemented CMS that conform to uniform standards and are implemented in close coordination with their Corporate Compliance departments for all Consumer and tesa subsidiaries. The Corporate Compliance departments are also responsible for developing and monitoring the CMS and defining minimum standards for our compliance programs.

The Corporate Compliance departments of Consumer and tesa report annually to the Executive Board and the Supervisory Board on the Group-wide effectiveness of our CMS as well as progress on other compliance issues such as anti-corruption. To this end, compliance incidents and the implementation status of our compliance programs are recorded centrally and in our subsidiaries worldwide. The results are used to identify any further action required, with appropriate measures implemented by the

Corporate Compliance departments to ensure continual improvement. Reports on selected compliance issues are also submitted to the Executive Committee during the year.

In addition to these reports, the Executive and Supervisory Boards receive regular information and training on fundamental compliance issues and legal aspects.

Further information on the CMS is provided in the chapter "ESRS G1 - Business Conduct."

ESG governance

The Executive Board chaired by Chief Executive Officer (CEO) Vincent Warnery is responsible for approving the sustainability strategies and the Group targets they involve. It delegates implementation of the sustainability strategy to the Corporate Sustainability function, headed by Vice President Sustainability Jean-François Pascal, and the sustainability experts within the brands and functions, who report to the Executive Board on a monthly basis concerning implementation of the strategies and progress made in terms of targets and milestones.

ESG Governance (Consumer Business Segment)

In addition, the Executive Board is responsible for ensuring internal control and risk management that is commensurate with the business activities and risk situation. This includes sustainability-related targets relevant to the company. The Executive Board provides the Supervisory Board with regular, timely, and comprehensive reports (approx. three to five times a year and additionally in urgent cases) on all questions of relevance to the company, also regarding sustainability in particular, and explains discrepancies between the actual course of business and the planning and targets.

The Supervisory Board appoints, advises, and supervises the Executive Board in connection with the latter's management of the company, as laid down by the law, the Articles of Association, and the by laws. This also includes sustainability matters. The Supervisory Board and Executive Board work closely together to make a positive contribution to society and to achieve sustainable added value.

A new Digital and ESG Committee was established within the Supervisory Board in 2024, comprising three shareholder representatives and three employee representatives. The Digital and ESG Committee advises and supervises the Executive Board in its business conduct with respect to sustainability matters. These include strategies, targets, and initiatives relating to climate and environmental impacts, circular economy, social matters, human rights, and the commitment to an inclusive society along the entire value chain and beyond. The Digital and ESG Committee also supports the Presiding Committee in preparing the ESG targets to be set for Executive Board remuneration.

The responsibilities for monitoring sustainability matters are incorporated into the duties and offices of the Executive Board and Supervisory Board. These responsibilities are set out in our Corporate Governance Guidelines, in which the obligations with regard to the monitoring and management of sustainability matters are described in detail.

The members of the Executive Board and Supervisory Board receive specific training as needed, usually once a year. This ensures they have sufficient sustainability-related knowledge of the material positive and negative impacts, financial risks and opportunities as identified.

Information Provided to and Sustainability Matters Addressed by the Company's Administrative, Management, and Supervisory Bodies

Our Group-wide Corporate Sustainability function is responsible for setting the strategic direction of our sustainability activities and regularly reports to the Executive Board on progress and the need for action. This Corporate Sustainability function reports monthly directly to the Chairman of the Executive Board of Beiersdorf AG, who is responsible for sustainability. The Chief Financial Officer receives quarterly reports on matters relating to compliance and reporting (e.g., the
Lieferkettensorgfaltspflichtengesetz (German Supply Chain Due Diligence Act, LkSG), the "Corporate Sustainability Due Diligence Directive" (CSDDD), the CSRD, and the "European Deforestation Regulation" (EUDR)). Meetings are also held with members of the Executive Board, Executive Committee, Supervisory Board and the entire Executive Board, as needed. The Audit Committee receives reports of sustainability matters two to three times per year.

Two cross-functional steering committees oversee the management of material sustainability matters: the Sustainability Council for the Consumer Business Segment and the Global Executive Committee for tesa. The directors of all relevant business units headed by the members of the Executive Board are represented on the Sustainability Council. This committee convenes at least once every quarter. The Global Executive Committee at tesa is composed of the members of the Executive Board and other executives. The committee meets every two weeks; it also discusses sustainability-related topics in the course of its meetings. In addition, the Chief Sustainability Officer reports directly to the Chairman of the Executive Board of tesa.

The following sustainability matters were discussed at Executive Board and Supervisory Board meetings during the reporting year:

• Sustainability reporting
• Human rights risks
• Biodiversity
• Climate change adaptation
• Social protection
• Diversity
• Circular economy

The regular reports on sustainability matters to the Executive Board and the Supervisory Board are intended to ensure that they consider material impacts, risks, and opportunities in their oversight of the strategy, decisions on major transactions, and in risk management, and that trade-offs are dealt with if necessary.

Integration of Sustainability-Related Performance in Incentive Schemes

Achievement of sustainability targets is firmly enshrined in the Beiersdorf remuneration and incentive schemes. This underscores the Executive Board's responsibility for creating long-term value for people, the environment, and society.

The Supervisory Board is responsible for the determination of the remuneration of the members of the Executive Board. The total remuneration payable to the members of the Executive Board is composed of fixed and variable elements. The fixed remuneration, which is not tied to performance, comprises the base remuneration plus ancillary benefits. The variable, performance-related remuneration is composed of a short-term variable bonus with annual targets (variable bonus) and a long-term variable bonus (LTP). The sustainability and ESG-related targets are integrated into this variable remuneration.

Variable bonus

The members of the Executive Board receive a variable bonus tied to the performance of the Consumer Business Segment for each financial year. This is paid out after the Annual General Meeting of the year following the financial year in question. The variable bonus is composed of joint and individual performance criteria that are tied to the company's financial and non-financial performance as well as its strategic and operational development. The specific performance criteria can also be related to sustainability or ESG.

The performance criteria within the individual variable bonus targets in 2024 included (depending on the member) reduction of greenhouse gas emissions, receipt of the Triple-A rating from CDP, NIVEA sustainability projects, gender diversity, internationalization, and other diversity and inclusion targets. The average proportion of sustainability and ESG-related performance criteria in the 2024 variable bonus was $18 \%$ of target remuneration.

Long-term bonus (LTI)
Executive Board members receive a multi-annual bonus measured, in accordance with the currently valid remuneration system, on the basis of the targets for the achievement of strategic criteria after the expiry of a four-year bonus period from 2021 through 2024 (LTP 2021-2024). Climate-related targets accounted for $20 \%$ of the weighting of the entire LTP 2021-2024 (based on target remuneration). The climate targets were to reduce global Scope 1, 2, and 3 emissions by 20\% (vs. 2018) and increase the share of recycled materials in plastic packaging by 20\%, both by 2024 (see chapter "ESRS E1 - Climate Change"). Targets relating to diversity and employee development also accounted for $20 \%$ of the weighting.

The average proportion of sustainability and ESG-related targets in the entire performance-related variable remuneration for 2024 was $32 \%$ of target remuneration.

Risk Management and Internal Controls over Sustainability Reporting

As part of a risk analysis, the relevant positions and their associated processes were identified along with the key risks for sustainability reporting. Group-wide safeguarding and control measures have been defined for these positions and processes.

These measures include, among others, segregation of duties, manual approval processes based on the four-eyes principle, IT controls, access restrictions, and authorization concepts within the IT system, as well as system-supported procedures for data processing.

Compliance with recording and control mechanisms is regularly reviewed by Internal Audit. Sustainability-related risks are recorded and consolidated in an integrated IT system. In close coordination with Internal Audit, the Executive Board continuously monitors and oversees these safeguarding and control measures.

To meet the increasingly complex requirements of sustainability reporting, Beiersdorf will continue to expand its internal control system in the future.

Strategy, Business Model, and Value Chain

With a portfolio of global brands, Beiersdorf has developed into one of the world's leading companies in the consumer goods industry over the past 143 years - with over 190 international subsidiaries and more than 22,000 employees worldwide. Our business is divided into two separate, independently operating business segments: Consumer and tesa. As a wholly-owned subsidiary of Beiersdorf AG, tesa SE has been operated as an independent subgroup with its own management and corporate strategy since 2001.

In the Consumer Business Segment, our focus is on skin and body care for end consumers. We are represented in three market segments with our worldwide brands NIVEA, Eucerin and La Prairie: the mass market, dermocosmetics, and the premium segment. Our products are sold in 180 countries, with Europe representing our main sales market. Information on changes during the reporting period regarding sales market developments and the product segments offered can be found in the chapters "Results of Operations - Business Segments" in the management report and "Regional Reporting" in the consolidated financial statements.

In the tesa Business Segment, we concentrate on developing innovative adhesive tapes and selfadhesive solutions for industry, craft businesses, and end consumers. In the Industry division, tesa supplies specialized product and system solutions directly to industrial customers, especially in the automotive, electronics, printing and paper, and building and construction industries worldwide.

The tesa Consumer division encompasses those markets in which retail partners or retail-like channels supply end consumers with market-driven products. These include product ranges aimed at private consumers and craftspeople. tesa also uses e-commerce business to offer products for sale directly to end customers. The Consumer business is focused on Europe and Latin America. It sells both longestablished and innovative product solutions intended for various applications, including for daily use in offices, at home, and in crafts.

In total 22,678 employees had an active employment contract with Beiersdorf as of December 31, 2024.

Headcount of Employees by Geographic Region

	Consumer	tesa	Total
Europe	9,192	3,384	12,576
Americas	3,487	645	4,132
Africa/Asia/Australia	4,620	1,350	5,970
Total	17,299	5,379	22,678

Consumer

Our updated corporate strategy for the Consumer Business Segment "Win with Care" was announced in 2024. The aim of the strategy is to build on the growth of recent years in terms of both sustainability and profit. The strategic pillar "Performance with Purpose" sets out our objective of continuing to advocate for sustainability, with a particular focus on climate change mitigation and an inclusive society.

Beiersdorf aims to expand its climate action ambitions through this updated strategy. The new targets for 2032 are to reduce greenhouse gas (GHG) emissions by $30 \%$ by 2025 and by $50 \%$ by 2032 (vs. 2018) and to carry out an additional comprehensive product transformation. At present, the most important product groups in terms of our sustainability targets in all global markets are deodorants, soaps, body care, cream, and shower products. This is where we see the greatest leverage for emissions reduction. We have therefore set ourselves the following targets for our global product portfolio by 2032:

Packaging

• $100 \%$ of our plastic packaging made of recycled or renewable materials
• $100 \%$ designed for recycling

Product formulations

• $100 \%$ of soaps free from tallow
• $100 \%$ of cosmetics free from synthetic polymer microparticles
• $90 \%$ of ingredients biodegradable

These targets are aimed at achieving the company's Net Zero target by 2045, which was validated by the "Science-Based Targets initiative" (SBTi) in February 2024. For more details on our specific targets and actions for the sustainable transformation of our products, please refer to the chapters "ESRS E1 Climate Change" and "ESRS E5 - Resource Use and Circular Economy."

Our CARE BEYOND SKIN Sustainability Agenda remains an integral part of "Win with Care." It comprises seven focus fields that concentrate on the impact of our activities throughout the value chain: from the climate impact of our products and processes, the circularity of the resources we use and their influence on land and water use, through to the health and safety of our employees and consumers, and our commitment to an inclusive society. We have set ourselves ambitious targets in all areas, which we aim to achieve by 2025 and 2030, respectively.

CARE BEYOND SKIN Sustainability Agenda (Consumer Business Segment)

Sustainability Agenda (tesa Business Segment)

tesa
At tesa, sustainability is firmly enshrined in the business strategy. Our ambition is to use our technological know-how and passion to develop more sustainable adhesive solutions and products. The framework for this is formed by five strategic action areas for which tesa has defined the following long-term targets for the period through 2030:

Reduction of emissions

• Climate-neutral production (Scope 1 and 2) and a 20\% reduction in Scope 3 emissions vs. 2018.

Responsible sourcing

• We aim for full supply chain transparency, with the goal of at least $80 \%$ of our purchasing volume sourced exclusively from suppliers who have an EcoVadis assessment of at least 45 points and meet our responsible supply chain standards overall.

Use of recycled and bio-based materials

• $70 \%$ of product and packaging materials made from recycled or bio-based materials. We also aim to halve the use of non-recycled fossil-based plastics.

Circularity and reduction of waste

• We plan to offer sustainable end-of-life solutions for selected products. In production, we aim to further work on solvent-free processes and full solvent recovery.

Enable sustainability at our customers

• We plan to offer customers innovative adhesive solutions that contribute to the sustainability of their processes and products, and to make the joint work results measurable.

The strategic action areas extend across the business segment's entire value chain. As a production company in the chemicals sector, we see the greatest leverage for achieving our targets in:

• increased use of recycled and renewable raw materials for our adhesive solutions;
• close cooperation with suppliers; and
• use of renewable energy in our own production and in the supply chain.

An important product group in the context of sustainability targets is our adhesive solutions in the industrial sector in all global markets. By developing more sustainable products, we support our customers in achieving their own sustainability goals and underpin our own emissions reduction ambitions. The sustainability agenda, which is based on the Ten Principles of the "United Nations Global Compact" (UNGC) and the "Sustainable Development Goals" (SDGs) of the United Nations, continues to be an additional cornerstone of the strategy. It now reflects our aspiration to view sustainability holistically and thus also includes topics that go beyond the strategic action areas - such as occupational safety.

We see the three main challenges to the future realization of the sustainability strategies of the Consumer and tesa Business Segments as the availability of renewable energy for the existing supply chains, particularly in the chemicals industry, and the increasing digitalization of internal processes and supply chains to generate transparency. The increased transparency for consumers, including the supporting regulations from the legislator, will also play a key role in achievement of sustainability targets. The main solutions and projects for these challenges are set out in the topic-specific chapters below.

Value chain

Beiersdorf relies on extraction of raw materials for the production of its products. The raw materials used are associated with the following activities: cultivation and harvesting of agricultural raw materials (primarily palm oil, soy, coconut, wood, and natural rubber), animal husbandry (tallow), and mining and extraction of fossil and mineral raw materials. These raw materials are processed and refined to produce emulsifiers, surfactants, oils, adhesives and other substances, as well as packaging materials. We procure these raw materials from our suppliers via multi-tier supply chains and use them at our production sites. The intermediate products that we procure directly are primarily chemical products and packaging materials comprising plastic, aluminium, glass and paper.

Beiersdorf manufactures a wide range of products in its own operations. The Consumer Business Segment focuses on development and production of skin and body care products, and the tesa Business Segment makes self-adhesive product solutions for industrial customers and consumers. There are 15 production centers for the Consumer Business Segment, located in Europe, North and South America, Africa and the Asia-Pacific region. These centers focus on mixing and filling activities and produce primarily for their local and regional markets. tesa has seven production centers in Germany, Italy, the USA, China and Vietnam. The production network is supplemented by selected third-party manufacturers (3PMs).

Our production sites and 3PMs deliver the goods to our customers via a network of warehouses and distribution centers. Most warehousing and transportation services are purchased externally. Two warehouses are owned and operated by Beiersdorf. Individual adjustments to products shortly before dispatch (last minute adjustments and co-packing) are largely integrated into warehouse operations. Products are largely distributed to customers by truck and sea freight, increasing also by rail, and in exceptional cases by air freight.

Products in the Consumer Business Segment are predominantly delivered to food retail partners, who sell our products to the end consumers. The tesa Business Segment primarily supplies industrial customers, and to a lesser extent retail partners from the food and building materials sectors.

We rely on agile supply chains, and perform ongoing analyses of our production and supply networks and update them as necessary to ensure procurement of our most important materials and address the needs of our customers and consumers.

Interests and Views of Stakeholders

The transition to a more environmentally-friendly and socially responsible economy requires collective action. We are therefore in continual dialog with our stakeholders and endeavor to understand their positions, concerns and expectations. We share the insights from this dialog several times per year in the relevant decision-making bodies and with the Executive Board and Supervisory Board. This enables us to subject our business strategy to constant scrutiny and make targeted adjustments as necessary.

Stakeholders	Relevance and purpose of engagement	Type and examples of engagement	Frequency
Own workforce	As an employer, we have a significant impact on the personal and professional development of our employees. We can have a positive influence on our employees by offering them a safe workplace, and personal and professional development opportunities, as well as promoting a healthy work-life balance with fair pay and social benefits. These factors may have a profound effect on the personal development, satisfaction, health, and general well-being of our employees outside of their working lives.	Our engagement with our own workforce involves open and transparent communication, fostering employee development, and designing an attractive working environment.	Several times per year
		The dialog between Beiersdorf and its employees takes place at various levels, such as at staff meetings, through employee representatives, via annual employee surveys and in one-on-one employee meetings.
Consumers	Dialog with our customers as a key stakeholder group is extremely relevant.	Participation in the "Consumer Goods Forum," an organization that brings together consumer goods retailers and manufacturers from around the world to work on trusting and future-ready relationships with consumers.	Ongoing
Industrial customers	Dialog with this group of stakeholders is highly relevant, as industrial customers have their own sustainability targets that we must address with our products and technologies. Demanding customer requirements may also have the effect of accelerating our own transformation.	Communicating and raising awareness of the Beiersdorf sustainability agenda, targets, progress and specific examples of sustainability measures among industrial customers.	Ongoing
	On the other hand, we must convince industrial customers of our own commitment and illustrate the added value of more sustainable products.	Each tesa business unit has its own sustainability manager to coordinate customer requirements and enable specialist cooperation.
Suppliers	Our suppliers can have a positive impact throughout our value chain, and are therefore key stakeholders. Open dialog with suppliers enables us to work together to define sustainability standards, initiate improvements, and increase transparency in the supply chain.	Integrating external knowledge and promoting close cooperation with our suppliers through dialog and joint projects. Strategic supplier management with clearly defined standards in terms of quality, working conditions, and environmental protection. Dialog with suppliers on decarbonizing the value chain (Net Zero/reducing Scope 3 emissions).	Ongoing
		Involvement in the "AIM-Progress" international collaboration initiative, a global forum of leading fast-moving consumer goods (FMCG) manufacturers.

Retail partners	Distributors are a relevant group of stakeholders as they are involved in the daily shopping decisions of customers and can steer them towards more sustainable products. Our partnerships with retailers enable us to make the supply chain more sustainable while also meeting the needs and expectations of consumers in an increasingly environmentally conscious market.	Participation in events, programs, campaigns and platforms offered by retailers on sustainability. Participation in annual reporting via retail or third-party platforms; provision of our latest sustainability data. Strategic top level dialog on sustainability, e.g., top-to-top meetings; participation in annual discussion formats between sustainability experts.	Ongoing
Investors	Investors play a key role in the long-term performance of our company and are therefore a relevant stakeholder group. We convey our sustainability strategy and performance to investors to enable them to make well-founded decisions as well as to understand their expectations of our company.	Annual/regular events based on the financial calendar at which sustainability information is also provided (Annual General Meeting, annual report publication, etc.). Specific meetings with investors who specialize in sustainability and/or demand certain minimum standards. Ongoing support from Investor Relations (responding to investor/rating queries; needs-based, topic-specific meetings with investors/rating agents on sustainability matters).	Several times per year
Policy makers	Policy makers are a relevant group of stakeholders as they shape the framework for corporate and market development. We raise policy makers' awareness of the value chain for the beauty and body care industry and the key role played by the sector in both economic and societal terms.	Cooperation with companies from the beauty and body care sector for the "Value of Beauty" alliance. The alliance's mission since January 2024 has been to foster a fundamental understanding of the beauty and body care industry in relation to the economy, sustainability and innovation, health and well-being, and society and culture. The alliance underscores the role of the industry in driving sustainability and climate action at European level, such as through sustainable sourcing of raw materials and product development, production, transportation, consumption, research and innovation.	Ongoing
Local communities	The nature of our business means that we always operate in social spaces, which makes local communities and neighborhoods relevant stakeholders. We also consider the local communities directly linked with our value chain to be key stakeholders. We are therefore keen to make a contribution to social development, environmental protection, and climate change mitigation at local level.	Cooperation with various organizations at local level with the aim of giving back to the local communities and being visible in the community (e.g., through the "Hanseatic Help" and "Die Arche" charities). Activity directly in palm (kernel) oil cultivation areas with the aim of improving the local working and living conditions of farmers for the long term.	Ongoing

Value chain workers	The well-being of workers along our entire value chain is a key priority for us, making them a relevant group of stakeholders. We ensure good working conditions and monitor our suppliers accordingly.	Establishing various grievance mechanisms to enable workers in the supply chain and all other stakeholders to report noncompliant behavior or voice concerns. Various media channels and audit reports of our direct and indirect business partners; we receive information via these channels if business partners in upstream supply chains have, or are suspected to have committed breaches of human rights or labor and environmental standards. Participation in multi-stakeholder initiatives such as the "Roundtable on Sustainable Palm Oil" (RSPO) and "Action for Sustainable Derivatives" (ASD), which offer comprehensive reporting systems. Reports from affected communities of suspected noncompliance are investigated jointly, and assessed for veracity, and suitable actions determined.	Ongoing
		Partnerships with non-governmental organizations (NGOs); we consider the perspective of vulnerable groups in our strategy.
NGOs	NGOs expect us to actively advocate for sustainable development. Our close and critical dialog with NGOs helps us to refine our sustainability strategy and scrutinize past behavior.	Strategic partnership with the "World Wide Fund for Nature" (WWF); since 2016, this cooperation has enabled us to understand the WWP's perspective on a range of sustainability matters and to integrate them into our sustainability strategy. Cooperation with aid organizations "Care" and "Plan International."	Ongoing
		Additional cooperation with NGOs at local level (e.g., "Das Geld hängt an den Bäumen" and "Hanseatic Help").

Material Impacts, Risks, and Opportunities and Their Interaction with Strategy and Business Model

The table below lists the material sustainability-related impacts, risks, and opportunities (IROs) that we have identified in our ESRS-compliant materiality assessment. The IROs are allocated to the topical ESRS and the sub-topics listed in ESRS 1. All listed IROs are covered by the ESRS requirements and no further entity-specific topics were identified. The IROs generally apply to both, the Consumer Business Segment and the tesa Business Segment; exceptions are clearly indicated in the table.

The identified impacts on the environment and people are all to be put into the context of our business model as a global consumer goods manufacturer. The impacts in our own operations are primarily associated with the process of manufacturing our products. Impacts in the upstream and downstream value chain arise through our business relationships with suppliers that supply us with raw materials and intermediate products or deliver our products. Impacts also arise through the use and disposal of our products by consumers or at the end of the product life cycle.

Our business model and strategy are heavily influenced by the necessity for sustainable conduct. The direct effects of the impacts, risks, and opportunities listed below are already noticeable: They include the increasing regulatory pressure, potential reputational risks, transitioning our production sites, and the need for good working conditions both for our own staff and throughout the value chain. We expect additional challenges going forward, such as rising costs, stronger shifts in consumer preferences, and operational adjustments to meet regulatory requirements.

Beiersdorf performed a qualitative analysis of the resilience of its corporate strategy and business model with a view to the material IROs in 2024. The focus was on the extent to which these topics are integrated in the business processes, strategy, and reporting. The results of the analysis underpin the assessment that the company is capable of addressing the material impacts and risks and taking

advantage of its material opportunities. Sustainability is firmly enshrined in our business strategy and integrated in our strategic planning with the objective of ensuring the long-term success and resilience of our company.

As regards the identified opportunities and risks, we do not expect any material financial effects on Beiersdorf's net assets, financial position, results of operations this reporting year or next.

Further information on the actions we are carrying out in the various areas is provided in the topicspecific chapters under "Environment", "Social", and "Governance."

E1 Climate Change

IRO	Value chain	Description	Time horizon
Climate change adaptation
Risk (physical)	Own operations	The increase in extreme weather events due to climate change increases the risk of damage to material property and higher insurance costs at our sites in regions under climate threat.	Medium term
Risk (transition)	Upstream	Prices of raw and other materials may rise due to the effects of resource depletion caused by climate change and because of new regulations.	Medium term
Risk (physical)	Upstream and downstream	The increase in extreme weather events due to climate change increases the risk of disruptions in the supply chains and transportation networks, which may result in delayed dispatch of goods, damage to the infrastructure, and increased costs for rerouting.	Medium term
Climate change mitigation
Negative impact (actual)	Own operations	Some of the energy used for production and office buildings is from non-renewable sources and therefore causes greenhouse gas (GHG) emissions.	Short term
Negative impact (actual)	Upstream	The business activities in the upstream value chain, such as sourcing of raw materials and packaging manufacture, are energy intensive and currently rely on fossil fuels, which results in GHG emissions.	Short term
Negative impact (actual)	Downstream	The end products are distributed via fleets with internal combustion engines operated with non-renewable fuels, and the disposal of products results in GHG emissions.	Short term
Risk (transition)	Own operations	Governments around the world are introducing policies to mitigate climate change. The European Commission's "European Green Deal" laid down a large number of new climate-related requirements for businesses. Companies that fail to comply with these requirements can expect fines, legal action, or reputational damage.	Medium term
Opportunity	Own operations (Consumer Business Segment)	Consumers increasingly expect companies to have a positive impact on the environment. Developing products with a reduced carbon footprint drives innovation and presents Beiersdorf with an opportunity to set itself apart from the competition.	Medium term
Energy
Negative impact (actual)	Upstream	The extraction and production of some materials used, such as aluminum for packaging purposes, is highly energy intensive.	Short term

E2 Pollution

IRO	Value chain	Description	Time horizon
Pollution of air
Negative impact (actual)	Upstream	Energy-intensive business activities in the upstream value chain, such as sourcing of raw materials, manufacture of packaging, management of third-party manufacturers (3PMs), and transportation and distribution of raw materials and intermediate products are often associated with the use of fossil fuels. This may cause emissions of pollutants and adversely affect air quality.	Short term
Pollution of water
Negative impact (potential)	Upstream	Water pollution caused by suppliers in the chemical industry who may release pollutants into the environment. Production of paper (pulp) for tesa is among the largest industrial water pollutants in some countries.	Long term
Negative impact (actual)	Downstream (Consumer Business Segment)	Use of skin care products by consumers may transfer substances into wastewater, thereby adversely affecting the water quality.	Long term
Substances of very high concern
Negative impact (potential)	Downstream (Consumer Business Segment)	Some products such as deodorants may contain substances of very high concern. Use of such products may cause these substances to be released into wastewater and build up in the environment.	Medium term
Microplastics
Negative impact (actual)	Downstream (Consumer Business Segment)	Some products may contain microplastics that can be released into the environment through consumer use. They do not decompose, but build up and may have an adverse effect on the environment, and - via the food chain - also on human health.	Long term
E3 Water and Marine Resources
IRO	Value chain	Description	Time horizon
Water consumption and withdrawal
Negative impact (actual)	Own operations (Consumer Business Segment)	The Consumer Business Segment in particular manufactures products that require large amounts of water in the production process that cannot be returned to the water cycle.	Long term
Negative impact (potential)	Upstream	Large amounts of water are consumed for some intermediate products and raw materials (e.g., on palm oil and cotton plantations, etc.) that cannot be returned to the water cycle in the region.	Long term
Negative impact (potential)	Own operations	The major water withdrawal in the production process may lead to water scarcity in the vicinity of production sites. This ultimately has an impact on the natural environment and may result in a depletion of groundwater.	Medium term
Risk	Upstream	The shortage of raw materials for materials with high water consumption (e.g., agricultural products) may result in an increase in procurement costs.	Medium term
Risk	Own operations	An acute water shortage in regions with very high water risk may disrupt industrial processes and lead to production delays, reduced efficiency, increased downtime, and costs for alternative solutions.	Medium term

E4 Biodiversity and Ecosystems

IRO	Value chain	Description	Time horizon
Direct impact drivers of biodiversity loss
Negative impact (actual)	Upstream	Beiersdorf sources palm oil and natural rubber from Southeast Asia. The associated destruction of habitats through deforestation of large areas of tropical rain forest for the purpose of expanding plantations and monocultures results in a loss of biodiversity.	Medium term

E5 Resource Use and Circular Economy

IRO	Value chain	Description	Time horizon
Resource inflows
Negative impact (potential)	Own operations	A large volume of many different biological materials, new fossil materials, and packaging are used in the manufacture of our products.	Short term
Risk	Own operations	A plastic tax on packaging made from fossil plastics has been agreed at European level. This results in increased procurement costs, as Beiersdorf products fall under this rule.	Medium term
Resource outflows
Negative impact (potential)	Own operations	The products contribute to a significant outflow of materials and plastic packaging.	Short term
Negative impact (actual)	Downstream (tesa Business Segment)	Most tesa products (e.g., adhesive tape) cannot be recycled at the end of their life cycle, which has a negative impact on the circular economy of the plastics stream.	Long term
Risk	Own operations	New EU regulations concerning the circular economy are causing additional fees and investment in sustainable packaging innovations.	Medium term
Waste
Negative impact (potential)	Downstream	Packaging waste is created at the end of the life cycle. The products are primarily packaged in plastic and/or cardboard boxes, and although these can be recycled, they are not fully biodegradable. These may ultimately be incinerated in countries without a proper recycling system.	Medium term

S1 Own Workforce

IRO	Value chain	Description	Time horizon
Working conditions (working time, work-life-balance)
Positive impact (actual)	Own operations	The enforcement of collective agreements ensures that working conditions for our own workforce are appropriate or above the industry standard (in terms of working time, work-life-balance, parental leave, etc.).	Medium term
Working conditions (social dialog, freedom of association, collective bargaining)
Positive impact (actual)	Own operations	Our own workforce is represented by a trade union. There is a works council that ensures the involvement and consultation of the employees, freedom of association, and collective bargaining.	Medium term
Working conditions (health and safety)
Negative impact (actual)	Own operations	The staff at the production sites handle dangerous materials and machinery that could jeopardize their general health and safety.	Medium term
Equal treatment and equal opportunities (gender equality and equal pay for work of equal value)
Positive impact (actual)	Own operations (Consumer Business Segment)	By signing the "Consumer Business Gender Parity Ambition," the Consumer Business Segment committed to achieving gender parity across all management levels (1-4) by 2025.	Medium term
Equal treatment and equal opportunities (diversity)
Positive impact (actual)	Own operations (Consumer Business Segment)	The principles of diversity and inclusion are incorporated in the "Global DE&I Roadmap" and enable a strategic approach to promoting diversity in the corporate culture and company processes.	Medium term
Equal treatment and equal opportunities (training and skills development)
Positive impact (actual)	Own operations	Training and upskilling programs enable employees to develop their skills on an ongoing basis. These programs are supported by regular, constructive performance appraisals. The aim of this approach is to provide the best possible support for employee development and ensure the effectiveness of the programs.	Medium term

S2 Workers in the Value Chain
IRO	Value chain	Description	Time horizon
Working conditions (working time, adequate wages, freedom of association)
Negative impact (potential)	Upstream	The business activities in the supply chains of our global activities are associated with high pressure on workers in various sectors, such as agricultural products. This is an indirect contribution to difficult working conditions, particularly at the lower end of high risk supply chains, such as production of raw materials based on palm oil or rubber. Negative impacts may include deductions from wages, working time or wage violations under local law, and suppression of freedom of association.	Medium term
Equal treatment and opportunities for all (measures against violence and harassment)
Negative impact (potential)	Upstream	The business activities in the supply chains of our global activities are associated with high pressure on workers in various sectors, such as agricultural products. This is an indirect contribution to difficult working conditions, particularly at the lower end of high risk supply chains, such as production of raw materials based on palm oil or rubber. Negative impacts may include discrimination in the workplace.	Medium term
Other work-related rights (child labor, forced labor)
Negative impact (potential)	Upstream	The business activities in the supply chains of our global activities are associated with high pressure on workers in various sectors, such as agricultural products. This is an indirect contribution to difficult working conditions, particularly at the lower end of high risk supply chains, such as production of raw materials based on palm oil or rubber. Negative impacts may include child or forced labor.	Medium term
S3 Affected Communities
IRO	Value chain	Description	Time horizon
Rights of indigenous peoples (free, prior, and informed consent)
Negative impact (actual)	Upstream (Consumer Business Segment)	The expansion of palm oil plantations may be associated with displacement of indigenous communities and conflicts regarding land rights.	Long term
S4 Consumers and End-Users
IRO	Value chain	Description	Time horizon
Personal safety of consumers (health and safety)
Positive impact (actual)	Downstream (Consumer Business Segment)	The products from the Consumer Business Segment help to prevent and treat dermatological conditions for end consumers.	Short term
Negative impact (potential)	Downstream (Consumer Business Segment)	Despite a detailed and comprehensive safety assessment of all products, individual sensitivities, improper application or misuse of products may result in adverse health effects to consumers, for example, skin reactions such as irritant or allergic contact dermatitis. This is unavoidable and does not confirm that the products have not been properly evaluated.	Short term
Risk	Downstream (Consumer Business Segment)	The sale of products that are not safe or do not meet quality criteria may result in product recalls and potential legal action. This would involve financial loss due to the associated costs. Reputational damage is another possible consequence.	Short term
Opportunity	Own operations (Consumer Business Segment)	Beiersdorf's focus on high quality, safe, and healthpromoting products enables it to set its brands apart in the market, build a loyal customer base, and position itself as a leading company in the health-conscious cosmetics sector.	Short term

G1 Business Conduct

IRO	Value chain	Description	Time horizon
Corporate culture
Positive impact (actual)	Own operations	The Consumer and tesa Business Segments have guidelines on business conduct that promote the corporate culture. This creates the obligation to actively identify, report, and investigate behavior that violates the law or the Code of Conduct.	Long term
Protection of whistleblowers
Positive impact (actual)	Own operations	There are whistleblowing channels open not only to our own employees, but also to customers, consumers, suppliers, and other external stakeholders who wish to report possible misconduct.	Long term
Corruption and bribery
Positive impact (actual)	Own operations	There is a Group-wide compliance management system (CMS) that helps to prevent and detect corruption and bribery through targeted training. The participation rate has been close to $100 \%$ in recent years.	Long term
Risk	Own operations	If employees are not properly trained on preventing and detecting corruption and bribery, this may result in unintended breaches with legal consequences, fines and penalties.	Medium term
Risk	Own operations	Cases of corruption - even if they are unintentional may result in negative attention in the media, which causes reputational damage and a potential threat to the brand value of the company.	Medium term

Description of the Processes to Identify and Assess Material Impacts, Risks, and Opportunities

We have relied on materiality assessments as a strategic tool to orient our sustainability strategy and our reporting since 2011. In 2024, we revised our materiality assessment process extensively in line with new requirements under the ESRS, and performed a double materiality assessment pursuant to ESRS provisions. We also consolidated the assessment at Group level for the tesa and Consumer Business Segments.

The first step of the assessment involves defining potential and actual positive and negative impacts, as well as financial risks and opportunities. To do this, we identified business activities along our entire value chain at the level of the sub-topics specified in the ESRS, in which impacts, risks, and opportunities could arise. This allocation of the value chain provided an overview of potential interdependencies between the environmental and social impacts and the associated risks and opportunities within the materiality assessment. As a player in the cosmetics and FMCG industry, our focus is on resource use, packaging management and supply chain conditions. For example, we analyze how the extraction and processing of key raw materials such as palm oil or water produce environmental risks such as deforestation or water scarcity, while addressing social challenges such as fair working conditions in the supply chain. These interactions are analyzed not only for potential risks, but also for opportunities such as innovative packaging solutions or sustainable raw material alternatives. The aim is to ensure that our sustainability strategy is not developed in isolation, but as a dynamic response to complex interdependencies.

Our data basis was drawn from internal sources such as topic-specific risk analyses, and external data sources that deal with industry-specific risks.

We considered both our own operations and the upstream and downstream value chain in identifying and assessing the impacts of our company on people and the environment. The focus was on our main business activities, product groups, business relationships, and key raw materials supply chains in which multiple negative and positive impacts, opportunities, and risks are likely. Individual sites and assets were not reviewed and affected communities were not consulted with a view to impacts, opportunities,

and risks in the areas of pollution, water, resource use and circular economy. In some cases, individual impacts were assessed separately because of the different business models of the Consumer and tesa Business Segments.

In the next step, these impacts, risks, and opportunities were assessed and prioritized in several internal workshops involving representatives from all affected departments. In planning the workshops, we made sure that specialist representatives were in attendance, who were in regular dialog with relevant external stakeholders and whose perspectives could therefore be directly included in the discussions. No external experts were involved.

The assessment of impacts, risks, and opportunities was based on the methodology and thresholds set out in the implementation guidance of the "European Financial Reporting Advisory Group" (EFRAG). Negative impacts were assessed in terms of scale, scope and irremediable character, and potential impacts in terms of likelihood. Positive impacts were not assessed in terms of irremediable character. Having assessed the positive and negative impacts, we classified these according to the scales and materiality thresholds determined by the EFRAG.

In our financial materiality assessment, the likelihood of occurrence and the potential scale of the financial effect were considered. We applied the scales and thresholds used in the Group-wide risk management system. This was also a net risk assessment, in line with the Group-wide risk management system. Such methodological alignment is intended to ensure that the knowledge obtained from the materiality assessment can be integrated into the company's general risk management and thus also in the associated management processes. Sustainability risks are generally regarded as equally as important as other risk types in the Group-wide risk management system. Where sustainability risks are categorized as strategic risks, they are given special consideration (see "Risks and Opportunities Report").

Where an impact, opportunity, or risk exceeded the materiality threshold, the associated topic was classed as material. The final results were then validated by the relevant sustainability bodies from the two business segments: the Sustainability Council (Consumer Business Segment) and the Executive Committee (tesa Business Segment). The Executive Board and Supervisory Board (Audit Committee) of Beiersdorf AG were also informed and discussed the possible strategic implications of the results.

Based on the impacts, risks and opportunities identified as material, Beiersdorf selected the disclosures to be reported and assigned material data points to the IROs. Data points that are voluntarily reported or subject to phase-in options were eliminated. Where Beiersdorf identified individual data points or data elements in the remaining data points that were not considered material due to company-specific circumstances, these were not included in the reporting. An overview of all reported disclosure requirements can be found in "Annex A."

Monitoring identified impacts and risks is a key part of our sustainability management. Developments and progress within the framework of our sustainability strategy are measured against clearly defined KPIs and targets, allowing any necessary adjustments to be made at an early stage. The results are presented to the relevant committees so that the identified risks and impacts can be strategically addressed. Regular reviews of the materiality assessment ensure that our actions remain relevant. The materiality assessment is scheduled to be reviewed during reporting year 2025 and updated as necessary.

Assessment of climate-related impacts, risks, and opportunities
To identify climate-related impacts in the materiality assessment, we considered in particular our Scope 1-3 emissions, in order to take account of the impacts from both our own operations and the upstream and downstream value chain. We perform regular analyses to assess physical and transition climate risks

and opportunities - most recently in 2023 - in line with the requirements of the "Task Force on Climaterelated Financial Disclosures" (TCFD). These results were also included in the materiality assessment. The transition risks and opportunities were assessed based on the "Net Zero Emissions by 2050" (NZE) scenario of the "International Energy Agency" (IEA). This involved assessing the extent to which certain business activities and assets are directly or indirectly affected by regulatory, technological, reputational or market risks, the scale and likelihood of the impacts, and which remediation actions Beiersdorf takes.

We also performed an additional site-specific assessment of physical risks for all production sites in 2024. This was based on currently available scientific findings and relevant methods in line with the latest report by the "Intergovernmental Panel on Climate Change" and recognized scientific publications. The assessment covered both chronic and acute natural hazards, aiming to identifying all material risks to production sites under current and future climate conditions. We analyzed the hazards based on an ensemble of 20 climate models, taking into account emission scenarios SSP1-2.6, SSP2-4.5 and SSP5-8.5 for four periods (2000, 2030, 2050, 2085).

The three emission scenarios covered the entire spectrum of currently conceivable developments:

• SSP1-2.6: This scenario assumes a slight increase in emissions from 2020 with an increase in temperature of below $2^{\circ} \mathrm{C}$ against pre-industrial levels. This requires extensive climate change mitigation actions.
• SSP2-4.5: This scenario represents a medium emission pathway, with a balance between climate change mitigation actions and economic performance. There is a moderate increase in GHG emissions as fossil fuels continue to be used, resulting in a greater need for adaptation strategies, especially in vulnerable regions.
• SSP5-8.5: This scenario assumes a sharp rise in emissions. Increased use of fossil fuels and an energy intensive lifestyle result in a temperature rise of around $5^{\circ} \mathrm{C}$ by the end of the century. Minimal climate change mitigation actions are implemented. Climate adaptation challenges require international coordination.

A site and building-based risk assessment was carried out for each climate-related hazard. The risk comprises the threat at the site due to natural hazards (hazard analysis) and the associated damage potential for the property assessed (vulnerability).

Assessment of Impacts, risks, and opportunities related to biodiversity and ecosystems We applied a two-step process to assess actual and potential impacts on biodiversity and ecosystems, both from our own operations and along the upstream and downstream value chain. First, we performed a traceability study on our palm oil supply chain. It then assessed biodiversity risks in the specific regions of our own sites and the oil mills in the upstream supply chain using such tools as the WWF's "Biodiversity Risk Filter" (BRF) and "Water Risk Filter" (WRF). Moreover, as a founding member of the "Action for Sustainable Derivatives" (ASD), we have been conducting an annual transparency analysis of our palm oil supply chain since 2019 to identify hotspots, disclose upstream supply chains, and support targeted local projects (see chapter "ESRS E4 - Biodiversity and Ecosystems").

The WWF's BRF covers both the regions in which our sites are located and the sector in which we operate. Together, these factors determine the overall biodiversity risk of a site, using 33 indicators that cover different aspects of biodiversity risk. A risk score is calculated for every indicator based on an assessment of the state of the biodiversity-related issue at a specific site and the dependency/impact of the sector on this indicator. Dependency in this context means that the selected sector relies on ecosystems, for instance to provide water and wood, or to regulate and mitigate environmental impacts. On the other hand, sectors have an impact on biodiversity at their sites, for example through

direct or indirect exploitation, pollution and land-use changes (including conversion, degradation and changes to ecosystems).

Physical risks were assessed based on our dependency on intact ecosystems and our exposure to ecosystem degradation and natural hazards. Sites located in regions with high water scarcity or poor soil conditions may be exposed to greater physical risks. The BRF assesses these risks by taking into account the local environmental conditions and the dependency of the industry on ecosystem services. The tool also assesses transition risks by considering how political changes, consumer trends, and technological developments could affect the business activities of a sector.

At present, Beiersdorf does not consider systemic risks in its assessment and has not directly consulted affected communities on the materiality assessment of shared biological resources and ecosystems.

None of our production centers coincide with biodiversity-sensitive areas as defined in the WWF's BRF. Therefore, the activities at these sites neither negatively affect these areas, nor lead to deterioration of natural habitats or the habitats of species. We have not so far assessed whether we need to implement actions to mitigate the impact on biodiversity associated with our business activities, as set out in Directive 2009/147/EC of the European Parliament and the Council.

Environmental Information

ESRS E1 - Climate Change

Material Impacts, Risks, and Opportunities

Climate change is one of the greatest challenges of our time - both for civil society and for businesses. Climate-related risks and opportunities therefore influence the Beiersdorf business strategy and activities.

In our materiality assessment, we have identified several physical and transition risks in the area of climate change adaptation. They are related to extreme weather events caused by climate change, raw material shortages, and supply chain disruptions. In relation to climate change mitigation we identified a material transition risk - caused by potential non-compliance and associated financial or reputational damages - and an opportunity connected to increased innovation for $\mathrm{CO}_{2}$-reduced products.

In addition, there are actual negative climate change mitigation impacts related to the emission of greenhouse gas (GHG) emissions in our own operations and in our upstream and downstream value chain; their main source is the use of fossil fuels in our production and raw materials procurement. Since these procurement processes are highly energy-intensive, we have also identified a negative upstream impact regarding energy.

A detailed overview of all identified impacts, risks and opportunities and the methodology used for the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

Transition Plan for Climate Change Mitigation

Climate change mitigation is a key area of activity in the sustainability strategies of the Beiersdorf Consumer and tesa Business Segments. In 2024, we developed and published a "Climate Transition Plan" that serves as our roadmap to our 2032 climate targets and sets us on the path to Net Zero emissions by 2045. Our climate targets are in line with the "Paris Agreement" and are set out in detail in the sections "Targets related to climate change" and "Metrics related to climate change."

The "Climate Transition Plan", which incorporates requirements of the "Science Based Target initiative (SBTI) Net Zero Standard" and the "Technical Note on Climate Transition Plan" from CDP, is a culmination of collaborative efforts across all business functions. It builds upon sectoral Net Zero transition plans in energy, chemicals, and aluminium. The transition plan is integrated into our vision for the future of our brands and the cosmetics sector. It is aligned with the Beiersdorf business strategy and was approved by the Executive Board in June 2024.

Under our corporate business strategy "Win with Care", we are committed to leading in climate change mitigation. Our strategic choice of performance with purpose is demonstrated by our goal of achieving Net Zero by 2045. This target will be realized through the transformation of our business and our entire value chain, driven by collaborative efforts.

Beiersdorf identified key actions to initiate the decarbonization journey based on an assessment of technical and market readiness. An important building block is the transformation of production infrastructure. Increasing energy efficiency, expanding renewable energies, and electrification are among the key decarbonization levers. As part of the reduction of indirect GHG emissions along the value chain, the focus is on switching to sustainable materials for packaging and ingredients, and lowcarbon logistics. Moreover, engaging with suppliers and customers is crucial for indirect GHG emissions reduction as collaboration with our business partners enables us to implement all the actions identified.

Beiersdorf annually reports financial information in line with the "EU Taxonomy Regulation", disclosing the share of sales, CapEx, and OpEx associated with environmentally sustainable economic activities (see chapter "EU Taxonomy"). Currently our core business activities do not cover any activities listed in the latest version of the Delegated Acts. Only one activity in the tesa Business Segment, which relates to the production of subcomponents for batteries (Activity 3.4), was identified as taxonomy-eligible. However, this activity is of minor importance compared to the core business activities of Beiersdorf and only makes up a small proportion of the Group's sales. For this reason, Beiersdorf has no objective or CapEx plan(s) in place for aligning economic activities.

In our transition to Net Zero, our investments in any infrastructure, facilities and equipment that have a carbon lock-in effect will be limited to the minimum. Our existing assets are also not subject to longterm carbon lock-in. In the value chain, we are clear on our Net Zero ambition, thus discouraging further investment from suppliers in carbon-intensive infrastructure. We do not expect any carbon lock-in effect from our own production or value chain.

Our goal is to convince our stakeholders that we are serious about following our ambitions and taking tangible action to address climate change. We remain committed to regularly reassessing and refining our plan in response to any significant shifts in the assumptions underlying the plan. Our progress towards our climate targets is disclosed in this chapter.

Our company is not excluded from the EU benchmarks, which are in line with the "Paris Agreement."

Policies Related to Climate Change

To mitigate our climate-related negative impacts and adapt to identified climate risks, and to capitalize on our opportunity, we have set ambitions for both our own operations and our value chain. These commitments are outlined in our corporate policies. The ambitions defined in the policies are detailed through corresponding action plans and translated into concrete actions in the areas of climate change mitigation and adaptation, energy efficiency, and renewable energy deployment (see section "Actions related to climate change").

Consumer
Beiersdorf Environmental Policy

In the "Environmental Policy", the Consumer Business Segment states its commitments - which have been informed by stakeholder exchange through strategic partnerships with environmental organizations, memberships in industry associations, and participation in conferences - and ambitions regarding its responsibility toward the following environmental aspects: climate, water, resource use and circular economy, biodiversity, responsible sourcing, pollution, as well as compliance. The overarching objective in each of these areas is to minimize the impact of the business segment's activities on the environment. In the area of climate change, the policy addresses the topics of climate change mitigation and adaptation, energy efficiency, as well as renewable energy deployment. Through the policy's implementation and related actions, the Consumer Business Segment contributes to the "Paris Agreement's" $1.5^{\circ} \mathrm{C}$ target.

The "Environmental Policy" applies to all operations of the Consumer Business Segment globally, encompassing all stages of the value chain from raw material sourcing to product end-of-life, unless otherwise specified for the respective topic. The Beiersdorf Vice President Sustainability is accountable for the policy implementation. The policy is publicly available on our website for all relevant stakeholders.
tesa
tesa Environmental Guidelines
The tesa "Environmental Guidelines" set out aspirations to protect the environment which the business segment operates in, among other things by addressing climate change mitigation and adaptation via reducing GHG emissions and increasing energy efficiency. The policy serves as a framework for continuous improvement in environmental performance, resource efficiency, and decarbonization along the entire value chain. Energy consumption is one important control parameter for reducing the environmental impact - e.g. through further energy-saving opportunities, optimized energy-intensive processes, and reduced $\mathrm{CO}{2}$ equivalent $\left(\mathrm{CO}{2} \mathrm{e}\right)$ emissions.

The "Environmental Guidelines" are part of the environmental management system of tesa. At all seven production facilities, the business segment uses ISO 14001-certified environmental management systems for the continuous organization and planning of operational environmental protection. In addition, tesa uses energy management systems in line with internationally recognized standards. Four production sites and the tesa headquarters are certified in accordance with ISO 50001.

The "Environmental Guidelines" apply to all tesa operations globally. Through a yearly management review, the tesa management board is involved in monitoring the policy implementation. Operational responsibility lies with the environmental and energy experts at the respective locations. The policy is publicly available on our website for all relevant stakeholders.

Actions Related to Climate Change

As part of our "Climate Transition Plan" we have created an action roadmap. It encompasses our entire value chain and reflects cross-functional plans to reduce GHG emissions. The focus is on our main levers for decarbonization, i.e. direct operations, packaging, raw materials, product transformation, and logistics as well as stakeholder engagement with an emphasis on suppliers, retail customers, and consumers. The implementation of the actions is subject to the availability of financial resources, which can be provided mainly from the Group's own resources. This is why Beiersdorf integrated the implementation of its transition plan into its overall financial planning process (see section "Transition plan for Climate Change Mitigation"). The group has committed to providing the needed resources.

Lever: Direct operations

Description: To reduce emissions from our production which is the major part of Scope 1 and 2 emissions, we have started to analyse emissions as well as energy consumption, and derive necessary actions. These mainly include the following:

• operational improvements such as replacing inefficient equipment, smart control systems, or LED lighting with daylight dimming and motion detectors,
• converting our heat and steam from natural gas to alternative green energy sources,
• shifting from purchasing renewable energy certificates to directly procuring green electricity, or in the future (virtual), utilizing "Power Purchasing Agreements" (PPAs),
• applying "Green Building Standards" to all new construction and expansion projects,
• installing photovoltaic systems and wind turbines, as well as
• transitioning our car fleet, forklifts, and trucks to low- or zero-emission vehicles.

Scope: Own operations (Consumer and tesa) globally
Time horizon: 2030

Expected outcome: As a result, we expect to reduce operational GHG emissions (Scope 1 and 2) and achieve our reduction target. Please see sections "Targets related to Climate Change" and "Metrics related to Climate Change" for achieved reduction.

Lever: Packaging

Description: To design and use packaging with a lower carbon footprint, we follow the " 4 R " principle (reduce, reuse, recycle, replace):

• Reduce: We strive to reduce all types of packaging materials. This includes removing all unnecessary packaging materials and making packaging as light as possible.
• Reuse: We want to increase reusable and refillable packaging. That's why we design our packaging to last longer and offer our customers more refillable packaging sets. Building on market trends and educating consumers is key here. We also cooperate with suppliers to create circularity packaging concepts.
• Recycle: We use recycled materials from mechanical, chemical, and advanced recycling technology in our major packaging materials including plastics, paper, and aluminum.
• Replace: We aim to replace existing packaging materials with more sustainable solutions or materials, e.g., recycled plastics and plastics from renewable sources like plant residue or side streams from other industries. For aluminum packaging, we rely not only on recycled aluminum but also on low-carbon aluminum.

Scope: Product design, upstream supply chain, product end of life, global product assortment
Time horizon: 2032

Expected outcome: In our Consumer Business Segment, we intend to reach 100\% recycled or renewable plastic packaging material and ensure that $100 \%$ of our packaging will be designed for recycling. At tesa, our goals are to use a total of $80 \%$ FSC*-certified fiber packaging materials and $50 \%$

less virgin fossil plastic in packaging in 2025 vs. 2018 base year. As a result, we will significantly reduce our packaging GHG emissions.

Lever: Raw materials

Description: Our goal is to progressively make our product formulas more sustainable while maintaining the high quality of our products. We plan to implement two major actions for this:

• Renewable materials and alternative production technologies: Next to increasing the share of renewable materials, we want to rely on responsibly sourced materials with no or low land use change impact, plant-based materials, or materials from side streams. Alternative production processes that require lower energy consumption and eliminate process emissions also represent a major lever.
• Reformulation: Replacing fossil- and animal-based ingredients with renewable ones will potentially require a reformulation of our products, as the replacements will likely demonstrate different characteristics. Similarly, our formulation will need to adapt to changing packaging with more recycled content and more sustainable design.

Scope: Product design, upstream supply chain, product end of life, global supply chain
Time horizon: 2032
Expected outcome: In our Consumer Business Segment, we strive to make 100\% of our bar soaps free of tallow, and $100 \%$ of our cosmetics free from solid polymer microplastics. In our tesa Business Segment, we plan to use $70 \%$ recycled or bio-based raw materials. Replacing animal-based raw materials eliminates $\mathrm{CO}_{2}$ emissions in the upstream supply chain, and eliminating fossil-based raw materials avoids emissions at the end of the product life cycle.

Lever: Product format transformation

Description: We identified two levers to further reduce our product carbon footprint (PCF):

• Switch to concentrated formula: Reducing or minimizing the water content in product formulas could reduce GHG emissions from transportation and, even more significantly, from packaging. Switching from a liquid to a solid formula could also lower the packaging intensity and lead to a reduction in plastic use and connected carbon footprint.
• Format switches: A product's carbon footprint can differ significantly depending on its product format. We work together with our value chain partners to explore different $\mathrm{CO}_{2}$-reduced formats while ensuring consumer benefits.

Scope: Product design, upstream supply chain, product end of life, global supply chain
Time horizon: 2032
Expected outcome: On top of emission reduction from solely changing packaging and formula, these actions are expected to further reduce emissions to reach our Net Zero target. Our goal is to explore different options and gain consumer acceptance by 2032.

Lever: Logistics

Description: In transportation and warehousing, our targets include optimizing among other things, energy efficiency and fuel consumption:

• We aim to avoid air freight and switch to less energy-intensive transport modes, for example by shifting the transportation of our goods from truck to rail, wherever accessible and financially viable.
• In the short term, we want to replace fossil fuels with biofuels. Our truck transportation service providers have used biofuels to transport our products in some regions in Europe. Since 2021, we have purchased mass-balanced biofuels from waste streams via certificates for our global ocean freight shipments. The mass balance approach means that the goal is to increase the amount of biofuel used in the global ocean shipping industry. This is because it is not yet possible to reliably track whether the ships carrying our products are actually running on biofuel. Overall, Beiersdorf aims to drive the transformation to a lower-emission logistics network.
• To power trucks, we are investigating in the use of alternative forms of energy like electricity and gas. This includes, but is not limited to, exploring financing options and partnerships with manufacturers to facilitate the transition to electric trucks.
• We want to identify opportunities for load optimization which can potentially decrease emissions. This concerns determining underloaded areas and increasing capacity utilization as well as utilizing lighter pallets and optimizing pallet stacking techniques. We furthermore strive to implement a transportation management system to automate processes.
• By working with logistics providers, we can understand and implement new transportation technologies and train truck drivers to drive more efficiently.
• In our third-party warehouses, we ask our partners to use renewable electricity.

Scope: Global finished goods transportation and third-party warehousing services
Time horizon: 2032
Expected outcome: The measures will help us achieve our emission reduction target in the transportation area.

Lever: Supplier engagement

Description: To reduce our Scope 3 emissions and eventually reach Net Zero, we engage in dialog with our suppliers through various measures concerning raw materials, packaging, logistics, media, and third-party manufacturing. We focus on the following aspects:

• Disclose GHG inventory.
• Set short- and long-term science-based emission reduction targets.
• Use renewable energy.
• Share knowledge and capacity building.
• Exchange Product Carbon Footprint (PCF) data.
• Collaborate on innovation and technology development.

We tailor our approach in engaging with suppliers depending on their maturity in climate management and the significance of the supplier to our GHG inventory, materials, or services that we source.

Scope: Upstream value chain, suppliers of raw materials, packaging, logistics, media, and third-party manufacturing globally

Time horizon: 2032
Expected outcome: We expect that through our engagement, our suppliers will realize the importance of climate action and the necessity of innovating low-carbon solutions. Overtime, the engagement efforts will enable our Scope 3 emission reduction.

Lever: Distribution partners

Description: In the Consumer Business Segment, we participate in our retailers' sustainability events, programs, campaigns, as well as platforms, and in strategic sustainability exchanges. We furthermore provide retailers with our latest sustainability data. Our employees in relevant functions share their knowledge about our sustainability agenda, targets, progress, and concrete examples of actions with retail customers and other business partners. These activities help us to create a more sustainable supply chain while also recognizing the needs and expectations of consumers in an increasingly environmentally conscious marketplace.

In the tesa Business Segment, we collaborate with our distribution partners to create more sustainable products and optimized packaging - e.g. steering projects for optimized transport and logistics, or engaging in industry initiatives and task forces. We are also working with our retail customers in this segment, too, to reduce emissions with a specific focus on Scope 3.

Scope: Downstream value chain, retail customers, and distribution partners globally
Time horizon: 2032

Expected outcome: Engaging with customers could generate a common understanding of the climate challenge facing our industry, develop a harmonized methodology for GHG accounting and data sharing, and empower end consumers to make sustainable decisions.

Targets Related to Climate Change

Beiersdorf has set ambitious targets to help mitigate the consequences of climate change on our planet and society as well as to acknowledge the identified risks and opportunities that it poses to business. Our Group-wide short- and long-term targets - with milestones to 2025, 2032, and Net Zero by 2045 have been validated by the SBTi, which confirmed that they are in line with the "Paris Agreement's" $1.5^{\circ} \mathrm{C}$ target. The Consumer and tesa Business Segments have each set climate targets which correspond to their distinct business contexts and contribute to the overall Beiersdorf Group climate targets. The targets contribute to achieving the commitments set out in the Consumer Business Segment's "Environmental Policy" and the tesa Business Segment's "Environmental Guidelines".

The GHG emission reduction targets were developed through a cross-functional top-down/bottom-up approach following the initial "Task Force on Climate-related Financial Disclosures" (TCFD) implementation. In particular, the R\&D, Supply Chain, Marketing, and Finance functions were involved in several workshops and technological feasibility analyses were conducted. Several approaches were discussed with our strategic partner, WWF, to guide the development of the targets. This means that necessary perspectives and business risks were included from the beginning. We want to give all employees the opportunity to contribute to our climate targets and encourage them to contribute their ideas to the climate strategy.

Below shows an overview of the Group's and each business segment's emission reduction target. All of the Beiersdorf emission reduction targets are in absolute terms, regardless of business growth.

Our business ambition is to continue to grow in volume and sales, which will pose a challenge to achieving our climate targets. However, with the decarbonization levers identified and resources planned, achieving the set climate targets is considered feasible.

Climate Goals

	Scope	2025		2030	2032	2045
		Reduction target (\%)	Base year emission $\left(\mathrm{CO}_{2} \mathrm{~g}\right)$	Reduction target (\%)	Reduction target (\%)	Reduction target (\%)
Group	Scope $1 \& 2^{1}$	$-30$	140,022	-	$-70$	$-90$
	Scope 3	$-10$	1,889,077	-	$-40$	$-90$
Consumer	Scope $1-3^{2}$	$-30$	1,566,707	-	$-50$	-
	Scope 3	-	-	$-20$	-	-

${ }^{1}$ The share of Scope 1 emissions in the total Scope 1 and 2 emissions in the base year was $77 \%$ and the share of Scope 2 emissions was $23 \%$.
${ }^{2}$ The share of total GHG emissions in the base year: for Scope 1 approx. 4\%, for Scope 2 approx. 1\% and for Scope 3 approx. 95\%.

The 2018 base year was chosen because it was the year with the most recent data available when Beiersdorf submitted the first short-term target to the SBTi in 2019. No outstanding external factors that would reduce the representativeness of 2018 data have been identified. The business activities of Beiersdorf have remained the same since 2018, despite the COVID-19 pandemic as well as some acquisitions and divestment over the years. For acquisitions and divestment since 2018, we have recalculated the baseline value according to our restatement guideline which was developed following "GHG Protocol" standards.

Target boundary

Our GHG emission reduction targets encompass all GHG emissions required by the Kyoto Protocol, without considering GHG removals, carbon credits, or avoided emissions, but including the use of biofuel certificates for transportation emissions as a Scope 3 reduction action.

For Scope 3 emissions, which are indirect and outside our operations, we have included different emission categories for different target years, aiming to focus our resources on significant emission categories while gradually increasing our emission coverage in our climate targets over time.

Scope 3 emissions categories included in our 2025 target boundary are:

• Scope 3.1: Purchased goods and services - raw materials, packaging materials, and third-party manufacturing services
• Scope 3.4: Upstream transportation and distribution, including finished goods transportation and third-party warehousing
• Scope 3.6: Business travel

We further expanded our 2032 and 2045 targets boundary to include:

• Scope 3.1: Purchased goods and services - media services, value-added services (VAS) and point-of-sale materials (POS)
• Scope 3.3: Fuel- and energy-related activities

• Scope 3.5: Waste generated in operations

• Scope 3.7: Employee commuting

• Scope 3.12: End of life treatment of sold products

Apart from emission reduction target, Beiersdorf has committed to reaching climate-neutral production by 2030. This means reducing Scope 1 and 2 emissions from production sites by at least $90 \%$ and neutralizing the remaining emissions of maximum $10 \%$ with carbon removals. In the reporting year, we achieved climate neutrality for four out of 22 production sites.

Since 2020, Beiersdorf has achieved our target of sourcing $100 \%$ of the electricity purchased by the sites covered by the data collection from renewable energy sources and is maintaining this target ${ }^{5}$.

Target achievement

In the reporting year, we once again made progress with regard to our climate targets. By the end of 2024, the Consumer Business Segment achieved a reduction of absolute GHG emissions (Scope 1, 2, and 3) by $25 \%$ compared to 2018. At the Group level, absolute GHG emissions were reduced by $47 \%$ in Scopes 1 and 2 and by $19 \%$ in Scope 3 over the same period.

Target Achievement

Business segment	Scope	Target year	Reduction target (\%)	Reduction till $2024(\%)$	Base year emissions ( $1024 / \mathrm{e})$	Emissions in 2024 ( $1024 / \mathrm{e})$
Group	Scope 1 \& 2	2025	$-30$	$-47$	140,022	74,581
	Scope 3	2025	$-10$	$-19$	1,889,077	1,529,841
Consumer	Scope 1.3	2025	$-30$	$-25$	1,566,707	1,170,239

Uncertainty and external dependency

Our climate targets and mitigation strategy are backed up by a quantitative simulation using a set of climate scenarios, including the Net Zero 2050 plan of the global energy, chemical, and aluminum sector, as well as the Net Zero commitments of the biggest world economies such as the EU, the USA and China. These climate scenarios provide us with insights into the readiness of low-carbon technologies needed, consumer behavioral change, renewable energy employment, and potential regulatory developments. Achieving our climate targets highly depends on the implementation of the Net Zero plans and commitments mentioned above.

The disclosed targets in this chapter mainly refer to the material topic climate change mitigation. In the area of climate change adaptation, we have set targets related to sustainable product innovation (see chapters "ESRS E5 - Resource Use and Circular Economy" and "ESRS E4 - Biodiversity and Ecosystems") in order to diversify material sourcing as well as to adjust to new regulations and changing consumer needs.

Metrics Related to Climate Change

We calculate our GHG emissions according to the requirements set by the "GHG Protocol" ("Corporate Accounting and Reporting Standard" and "Corporate Value Chain (Scope 3) Standard"). The "GHG Protocol" specifies different consolidation approaches for GHG emissions accounting and reporting. Calculating our emissions, we have followed a financial consolidation approach in line with financial reporting. The comparison between the financial control and operational control approach shows no major difference for Beiersdorf in terms of GHG accounting.

[^0]
[^0]: ${ }^{5}$ Includes only affiliates covered by data collection. Beiersdorf purchases green electricity directly from energy suppliers, or purchases "International Renewable Energy Certificates" (IRECs), "European Guarantees of Origin", or country-specific certificates.

In our GHG accounting, we account for all greenhouse gases in accordance with the "Kyoto Protocol." This includes carbon dioxide $\left(\mathrm{CO}{2}\right)$, methane $\left(\mathrm{CH}{4}\right)$, nitrous oxide $\left(\mathrm{N}{2} \mathrm{O}\right)$, sulfur hexafluoride $\left(\mathrm{SF}{6}\right)$, perfluorocarbons (PFCs), and hydrofluorocarbons (HFCs).

Energy consumption, Scope 1 and 2 emissions
We capture, consolidate, and analyze our operational energy consumption data to calculate our global Scope 1 and 2 GHG emissions. Collecting this data on an ongoing basis helps us verify the effectiveness of our measures and identify further potential for energy and emissions savings.

The Consumer Business Segment collects energy consumption data at all of its production sites, at the warehouses it operates, and at its offices above 50 full-time equivalents (FTE). tesa collects energy consumption data for all ISO 14001-certified sites and offices with more than 40 FTE, including six production sites and the company headquarter. Some administrative offices are excluded from data collection. Energy consumption and emissions from affiliates which are excluded from data collection or excluded after data validation are estimated. The estimation uses the average energy consumption and emissions per FTE in offices with validated data and the number of FTE of these affiliates. Thus, the reported energy and Scope 1 and 2 emissions cover all affiliates under financial control.

The emission factors used in our Scope 1 and 2 calculations are derived from the "Intergovernmental Panel on Climate Change" (IPCC), complemented by emission factors from our energy suppliers and the "International Energy Agency" (IEA). Further emissions, such as those from steam in district heating, are calculated using the emission factors provided by the "GaBi Databases" by the sustainability solutions provider "Sphera" and, if not available, the UK "Department for Environment, Food and Rural Affairs" (Defra).

Scope 1 and 2 emissions are then calculated by multiplying the collected energy consumption data by the emission factors of different energy types. Our Scope 2 emissions are calculated using locationbased and market-based approach. However, our Group climate target uses a market-based approach for Scope 2. A market-based method reflects emissions from electricity that companies have purposefully chosen (or their lack of choice). This approach uses emission factors derived from contractual agreements. If no market-based emission is available, then the system defaults to a locationbased emission, which utilized the residual mix of the country or region.

The process from energy data collection, emission factor mapping, and emission calculation is managed through the "Corporate Sustainability Software" provided by "Sphera." With this tool, we manage Scope 1 and 2 data in one place. We also benefit from its automatic update of emission factors and flexible reporting functions.

If biogas is used at our own sites, the biogenic emissions outside of Scope 1 are reported separately and not included in Scope 1. The biogas certificates acquired in this context are internationally recognized and are intended to prevent double counting of GHG reductions along the entire value chain. They are based on a mass balance approach in which the biogas is not physically purchased, but certificates are purchased to ensure that the gas is fed into the European gas grid. Currently, the "GHG Protocol" has not yet published any clear guidelines on the inclusion of such certificates. We closely monitor relevant biogas accounting standards and are committed to adapting our reporting in this area as existing standards evolve, and new standards are published.

Manual data collection is an error-prone and cumbersome process, which is a limitation to us. We have defined an internal validation process and are furthermore investigating a more automated, digitalized process of data collection.

Energy Consumption and Production

Energy consumption and mix	Unit	Consumer		teca.	Group
Fuel consumption from coal and coal products	MWh		-	-	-
Fuel consumption from crude oil and petroleum products	MWh	43,846		635	44,481
Fuel consumption from natural gas	MWh	66,517		188,756	255,273
Fuel consumption from other fossil sources	MWh	-		-	-
Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources	MWh	10,235		876	11,111
Total fossil energy consumption	MWh	120,598		190,267	310,865
Share of fossil sources in total energy consumption	\%	36		62	49
Fuel consumption from renewable sources (including biomass, biofuels, etc.)	MWh	66,927		45,000	111,927
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources	MWh	136,708		65,541	202,249
Consumption of self-generated non-fuel renewable energy	MWh	9,337		4,067	13,404
Total energy consumption from renewable sources	MWh	212,972		114,608	327,580
Share of renewable sources in total energy consumption	\%	64		38	51
Total energy consumption	MWh	333,570		304,875	638,445
Total energy consumption from activities in high climate impact sectors	MWh	333,570		304,875	638,445
Energy production
Non-renewable energy production	MWh	-		9,832	9,832
Renewable energy production	MWh	14,891		19,794	34,685

Scope 3 emissions

The "GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard" classifies Scope 3 emissions into 15 categories. The climate reduction targets of Beiersdorf encompass various emission categories in accordance with the SBTi guidance. Under the requirements of ESRS, companies are mandated to disclose significant Scope 3 categories. This report discloses Scope 3 categories that have been evaluated as significant and are included within our 2025 target boundary. Although other categories have also been quantified and some of them are included in our 2032 and 2045 target boundary, they appear as non-significant in the significance analysis and are not disclosed in this reporting year.

Screening and prioritization

Based on an economic and environmental input-output (EEIO) model, Beiersdorf began by identifying the most relevant categories of Scope 3 emissions using expenditures data. The EEIO model evaluates resource consumption and environmental impact throughout the supply chain on the basis of international statistics and databases. The analysis allowed us to identify the Consumer Business Segment's upstream Scope 3 emission hotspots. Taking into account the level of emissions, our ability to influence, and engagement purposes, we have selected the categories to be included in our target boundary, which meets the minimum coverage requirements of the SBTi near-term and long-term targets.

Beiersdorf is continuously working on improving the methodologies for accounting GHG emissions in different Scope 3 categories. As a first step, we are moving from the spend-based EEIO method to an activity-based approach in most of the categories. The emission factors used are mostly industry averages. We work with value chain partners to enable carbon footprint data exchange. This will enable us to better implement decarbonization measures and monitor the progress.

Digitalization

We take a holistic approach to digitalizing the sustainability processes, including reporting. For example, we integrated analysis tools, created a framework, and connected different systems to simplify reporting. This enables us to analyze key figures such as $\mathrm{CO}_{2} \mathrm{e}$ emissions or figures relating to plastic packaging and raw materials throughout the year and - if necessary - identify measures at an early stage that will help us achieve our emissions reduction targets.

Methodology

Selecting the appropriate methodology, data sources, databases, and underlying assumptions to calculate Scope 3 emissions is a challenging task. Our goal is to improve the accuracy and reliability of these measurements over time. The methodologies described below were selected based on our business boundaries, targets, and practical realities. This selection process includes consideration of emission types, industry-specific requirements, and the availability of activity data and emission factors. We strive to use comprehensive and relevant data sources and, to the extent possible, use automated data collection systems. The databases selected for emission factors are recognized and widely used, which enhances their credibility. We closely monitor updates to key databases and evaluate their changes and impacts. When emission factors and activity data reflect our current practices and technologies, more recent data is preferred. When data is incomplete and estimates are required, we refer to the most similar cases from our collected data and estimate based on the amount or expenditure of the missing activities. This systematic approach ensures that our Scope 3 GHG calculations are transparent and robust under current circumstances.

Using the calculation methods described above, we did not identify any significant measurement uncertainties in the energy and emissions figures reported in the Climate Change chapter. To ensure the completeness of the GHG inventory, estimates have been made for scopes and categories where primary data collection is difficult. These estimates are based on the primary data collected, which represents more than $93 \%$ of the data.

Scope 3.1 - purchasing of products and services

Consumer
The majority of our Scope 3 emissions are generated by packaging manufacturing processes ${ }^{6}$ and the raw materials we need for our products. The calculations of these GHG emissions are based on primary data for material consumption and secondary emission factors derived from life cycle assessment (LCA) databases. We work with service providers to consistently improve data on emissions factors for LCAs. $94 \%$ of packaging emissions and $90 \%$ of raw material emissions is calculated following this approach, the remaining $6 \%$ in packaging and $10 \%$ of raw material is estimated based on various approaches like unit of products, spend or average emissions of reference products, depending on data availability.

For our outsourced production and warehousing operations (Scope 3.4), we conduct supplier surveys ${ }^{7}$ to collect primary data on energy consumption as well as emission factors for purchased electricity. This data is allocated based on the quantities of goods produced for us or on goods turnover. The calculation methodology is congruent with the Scope 1 and Scope 2 calculations for our Consumer sites. In 2024, the data we gathered in these surveys covered $91 \%$ of our outsourced finished goods production and $90 \%$ of our warehousing activities. The emissions reported here are extrapolated based on spend for finished goods production and average inventory value for warehousing to cover all emissions.

Emissions from purchased services are based on our EEIO analysis. The transition to an activity-based approach remains a challenge.

[^0]
[^0]: ${ }^{6}$ We include (primary) consumer packaging and secondary packaging in our calculation. Packaging materials that are added as part of packaging processes or during preparation for transport are not included.
${ }^{7}$ The data collection period for outsourced production and warehousing (December 2023 to November 2024) differs from the reporting period.

tesa
This category includes emissions from purchased raw materials, packaging materials, and third-party products. Emissions from purchased services are excluded. The activity data is extracted from tesa's purchasing system. For the calculation, we use emission factors that are based on proxies for raw material production according to European common practice. For third-party products, we use expenditure-based, material-specific emission factors. Our emission factor database is continuously refined. The calculated emissions cover the entire upstream value chain from raw material production to Tier 1 suppliers ("cradle to gate").

Scope 3.4 - upstream transportation and distribution
To calculate global inbound and outbound GHG emissions from upstream transportation activities, we mostly use the "EcoTransIT" tool in accordance with the European EN 16258 standard. Primary data on distances, loads, and the various modes of transportation are obtained from our internal logistics network. Emission factors are secondary industry averages from "EcoTransIT."

Scope 3.6 - business travel

Consumer
To quantify our business travel emissions, primary data on distance and modes of transportation is either exported from our travel management system or reported directly by our affiliates. For the data collected via our travel management system, we calculate emissions according to the methodology established by the "German Association of Business Travel Agents" (Verband Deutsches Reisemanagement, VDR), taking into account a "Radiative Forcing Index" (RFI) factor of two for flights. In the case of directly reported business travel data, we calculate emissions based on IEA data.
tesa
In this category, we only include emissions from air travelling due to limited data availability. The calculation is based on the $\mathrm{CO}_{2}$ emissions of air travel for tesa Germany and tesa SPA. The emissions are broken down per FTE and multiplied with the total number of employees of tesa.

Scope 3.12 - end-of-life treatment of sold products
Consumer
These emissions come from two sources: packaging disposal and ingredients biodegradation. The packaging end-of-life (EoL) emissions are calculated using the share of different waste treatment methods for each packaging materials from Europe, combined with the packaging weights of our products. Ingredients EoL emissions are based on the assumption that the carbon content embedded in chemical ingredients will be biodegraded and released as $\mathrm{CO}_{2}$.
tesa
tesa's footprint in Scope 3.12 comprises the emissions from the disposal of our products and packaging. We applied raw material-specific emission factors for our own products and packaging. We estimated emissions for third-party products with the 3.1 emission ratio. We also referenced regionspecific waste treatment methods to reflect emission reduction from waste recycling.

Scope 3 emissions from our majority shareholding NIVEA-Kao are calculated based on the results of LCAs conducted in 2022 for certain reference products. We estimated the emissions generated in previous years on the basis of the quantity of reference products sold. NIVEA-Kao's raw material and packaging emissions are calculated using the reference products' bill of materials and the LCA emission factors. The upstream transport emissions are calculated using the product weight, the average distance transported, and the emission factors of the different modes of transportation. The calculated emissions are included in the respective Scope 3 categories.

Scope 3 emissions not disclosed
Beiersdorf has quantified base year emissions from Scope 3.1 (purchased services), 3.2 (capital goods), 3.3 (fuel and energy-related activities), 3.5 (waste generated in operations), 3.7 (employee commuting), 3.9 (downstream transportation and distribution), and Scope 3.15 (investment). However, these emissions are evaluated as non-significant and excluded from the Beiersdorf 2025 climate target. They are therefore not disclosed in this report. Scope 3.8, Scope 3.13 and Scope 3.14 are not relevant to Beiersdorf as we neither have upstream/downstream leased assets, nor franchises. Scope 3.10 processing of sold products is not relevant as both our cosmetics and adhesive products do not need further processing before application. As for Scope 3.11, the products of Beiersdorf do not have direct use phase emissions. Indirect use phase emissions could be generated for example when consumers take warm showers and apply our shower gel. Indirect use phase emissions are not part of the targets as required by the SBTi.

Scope 1-3 GHG Emissions

	Unit	Consumer		tesa		Group
		2018	2024	2018	2024	2018	2024
Scope 1 GHG emissions
Gross Scope 1 GHG emissions	tCO $_{\text {e }}$	44,537	24,729	62,682	48,107	107,219	73,072
Biogenic emissions of $\mathrm{CO}_{2}$ not included in Scope 1 GHG emissions	$\mathrm{tCO}_{2}$ e	599	13,320	-	8,870	599	22,190
Share from regulated emissions trading schemes	$\%$	-	-	26	26	15	17
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions	$\mathrm{tCO}_{2}$ e	60,132	55,659	23,757	26,502	83,889	82,059
Gross market-based Scope 2 GHG emissions	$\mathrm{tCO}_{2}$ e	16,187	1,464	16,616	281	32,803	1,745
Biogenic emissions of $\mathrm{CO}_{2}$ not included in Scope 2 GHG emissions	$\mathrm{tCO}_{2}$ e	-	-	-	-	-	-
Total Scope 1 and 2 GHG emissions
Total Scope 1 and Scope 2 GHG emissions (location-based)	$\mathrm{tCO}_{2}$ e	104,669	80,388	86,439	74,609	191,108	155,131
Total Scope 1 and Scope 2 GHG emissions (market-based)	$\mathrm{tCO}_{2}$ e	60,724	26,193	79,298	48,388	140,022	74,818
Significant Scope 3 GHG emissions
Category 1: Purchased goods and service	$\mathrm{tCO}_{2}$ e	1,330,395	1,002,691	321,053	335,738	1,651,448	1,338,429
Raw material	$\mathrm{tCO}_{2}$ e	658,240	519,245	252,839	260,059	911,079	779,304
Packaging material	$\mathrm{tCO}_{2}$ e	635,201	467,436	15,496	16,525	650,697	483,961
Finished goods manufacturing	$\mathrm{tCO}_{2}$ e	36,954	16,010	52,718	59,154	89,672	75,164
Category 4: Upstream transportation and distribution	$\mathrm{tCO}_{2}$ e	145,657	109,501	46,338	42,081	191,995	151,582
Finished goods transport	$\mathrm{tCO}_{2}$ e	133,922	120,687	46,338	42,081	180,260	162,768
Warehousing	$\mathrm{tCO}_{2}$ e	11,735	1,623	-	-	11,735	1,623
Reduction through the purchase of biofuel certificates	$\mathrm{tCO}_{2}$ e	-	$-12,809$	-	-	-	$-12,809$
Category 6: Business travel	$\mathrm{tCO}_{2}$ e	29,931	31,854	15,703	7,976	45,634	39,830
Total Scope 3 GHG emissions within 2025 target boundary ${ }^{1}$	$\mathrm{tCO}_{3}$ e	1,505,983	1,144,046	383,094	385,795	1,889,077	1,529,841
Category 12: End-of-life treatment of sold products	$\mathrm{tCO}_{2}$ e	396,617	389,172	123,629	121,282	520,246	510,454
Total significant Scope 3 GHG emissions	$\mathrm{tCO}_{3}$ e	1,902,600	1,533,218	506,723	507,077	2,409,323	2,040,295
Total GHG emissions
Total GHG emissions (locationbased)	$\mathrm{tCO}_{2}$ e	2,007,269	1,613,606	593,162	581,686	2,600,431	2,195,426
Total GHG emissions (marketbased)	$\mathrm{tCO}_{2}$ e	1,963,324	1,559,411	586,021	555,465	2,549,345	2,115,113

[^0]
[^0]: ${ }^{1}$ Total Scope 3 emissions within the 2025 target boundary do not encompass Category 12 end-of-life treatment of sold products. In recent years, the methodology for measuring end-of-life emissions of cosmetic products has been refined, resulting in an increased proportion of these emissions within our Scope 3 calculations. As we approach 2025, we will maintain the current target boundary but incorporate this category into our targets beyond 2025.

ESRS E2 - Pollution

Material Impacts, Risks, and Opportunities

In our double materiality assessment, we have identified business activities with negative impacts related to pollution. Beiersdorf has identified negative impacts on air and water pollution arising from its upstream sourcing activities, especially in energy-intensive industries like the chemical industry. In the downstream value chain, the Consumer Business Segment has identified negative impacts on water resources, as products may release substances of very high concern to the environment when used by consumers. Moreover, the Consumer Business Segment may have a negative impact on the environment when discharging microplastics (synthetic polymer microparticles (SPM)) into wastewater systems as a result of consumer use. We have not identified material risks or opportunities related to environmental pollution.

A detailed overview of all identified impacts, risks and opportunities and the methodology used for the double materiality assessment can be found in chapter "ESRS 2 - General Disclosures."

Policies Related to Pollution

Beiersdorf has implemented several policies to systematically reduce the risk of environmental pollution while promoting sustainable practices throughout the supply chain. These policies address and have the purpose to mitigate the impacts, risks, and opportunities identified in our double materiality assessment, aiming to establish clear environmental standards and expectations.

Consumer

Code of Conduct for Business Partners
The "Code of Conduct for Business Partners" (CoC) defines the requirements that must be met by our global business partners regarding environmental protection.

The CoC specifies that business partners should monitor, track, and document their emissions to air, water, and soil from their facilities, as well as the wastewater generated by their operations. Compliance with all applicable laws and local regulations concerning environmental impacts and protection is mandatory. We expect business partners to continuously aim to reduce any kind of negative environmental impact of products and services and to source in a responsible and sustainable manner. Moreover, it must be avoided causing water and air pollution that impacts natural food sources, denies local access to clean drinking water or sanitary facilities, or harms human health. The policy further states that emergency measures covering soil or water contamination must be prepared. Operators and, if available, company emergency response teams must be regularly trained about hazards and countermeasures. The policy does not specifically refer to the prevention of incidents and emergency situations, as well as the minimization and use of substances of (very) high concern.

The material impacts, risks, and opportunities addressed by the policy include upstream negative impacts on air and water pollution. Further details on the CoC are given in chapter "ESRS S2 - Workers in the Value Chain."

Beiersdorf Environmental Policy

The "Environmental Policy" outlines general environmental objectives of Beiersdorf such as reducing emissions and substituting or minimizing the use of substances of concern. The policy is also designed to address the critical issues of pollution and the environmental safety of products and processes. It does not specifically refer to avoiding incidents and emergency situations. The policy addresses the material impacts, risks, and opportunities associated with air and water pollution, as well as microplastics and substances of very high concern. Please see chapter "ESRS E1 - Climate Change" for further details.

tesa
tesa Code of Conduct for Suppliers
The tesa "Code of Conduct for Suppliers" (CoCS) serves as the foundation for supplier relationships in sourcing goods and services. It aims to guide the actions of tesa and its suppliers and aims to reach a positive impact on people, society, and the environment. Suppliers are required to have an effective environmental policy and comply with all existing environmental protection laws and regulations. They are encouraged to adopt a precautionary approach to environmental issues, promote greater environmental responsibility, advance environmentally friendly technologies, and implement sustainable life-cycle practices.

One of the key aspects of this policy is the management of chemicals and hazardous materials. Suppliers must identify any chemicals and materials that pose a hazard if released into the environment. Additionally, suppliers are required to regularly monitor air emissions, implement emission controls, and adhere to a greenhouse gas reduction plan that complies with or surpasses regulatory standards. Air emissions covered by this policy include, but are not limited to, volatile organic chemicals, aerosols, corrosives, particulates, ozone-depleting chemicals, and combustion by-products. The CoCS however, does not specifically refer to avoiding incidents and emergency situations.

The policy addresses upstream negative impacts on air and water pollution, with the scope focusing on tesa suppliers. Accountability for policy implementation rests with the Executive Board, which holds the highest level of responsibility.

Progress towards the policy objectives is monitored through internal tracking of signatures to the CoCS, with ongoing coverage checks. The policy is made available to all stakeholders through the tesa official website and is sent to business partners before the contract is signed.

Further details on the CoCS are given in chapter "ESRS S2 - Workers in the Value Chain."

Policies in Relation to Substances of Very High Concern

The following section describes the policies addressing the material negative impacts associated with substances of very high concern. These have exclusively been identified for the Consumer Business Segment. Accordingly, it has different policies in place that manage the procurement and handling of substances of very high concern.

Consumer

Standard operating procedure (SOP) selection criteria for raw materials
The SOP (identified as CBE.20003005.000.01) outlines the requirements for raw materials used in the manufacture of cosmetic and Over-the-Counter (OTC) products. It encompasses aspects related to product safety, regulatory compliance, quality, microbiology, and Beiersdorf specific restrictions.

A key part of this SOP is that raw materials must not contain substances prohibited by the EU Cosmetics Regulation or EU chemicals legislation (REACH). Additionally, unless exempted, raw materials must not contain substances listed in the "Candidate List of substances of very high concern for Authorization."

The policy addresses material negative impacts related to substances of very high concern. It covers raw materials intended for Beiersdorf cosmetic and OTC products, including those from third-party suppliers but excluding fragrance compounds and packaging materials as well as La Prairie and Chantecaille products, which are covered separately. Furthermore, the safety-related requirements stipulated in our global safety policy apply globally across all regions. The functions "Global Product Stewardship" and "Product Safety" as part of the Research and Development (R\&D) department are responsible for defining the raw material requirements summarized in this policy. Progress towards

the policy objectives is monitored through internal standard processes before final release and utilization of new materials in marketed products.

The SOP is accessible to internal stakeholders and is stored in the central document management system, part of the Global Quality Management System (QMS).

Fragrance Restriction List

The "Fragrance Restriction List" aims to ensure consumer safety and product quality by specifying the quantities of certain fragrance ingredients allowed in various cosmetic product categories. This list is based on internal assessments and expert judgments and includes requirements that exceed legal standards, including bans on certain substances and groups of substances. Notably, submissions must not contain substances listed in the "Candidate List of substances of very high concern for Authorization" (SVHC), as published by the European Chemicals Agency (ECHA) at the time of the "Fragrance Briefing."

The policy addresses material negative impacts related to substances of very high concern and applies globally to all Beiersdorf AG fragrances and aromas used in our products. This includes Beiersdorf affiliates and contract manufacturers. All fragrances and aromas must meet the requirements outlined in the corresponding "Fragrance Briefing" and the "Fragrance Restriction List."

The policy's accountability lies with the internal Expert Team "Fragrances," led by the Manager for "Ingredient Compliance" from "Regulatory" department. There is a contractual agreement between fragrance houses and Beiersdorf ensuring the binding nature of the "Fragrance Restriction List." Progress towards policy objectives is monitored by working with a fixed and small set of Fragrance Houses. Before being allowed to submit new fragrances, Fragrance Houses must undergo an intensive qualification process to ensure they can fulfil all requirements, with particular attention to systems and tools that safeguard compliance with global regulations and the "Fragrance Restriction List." Regular on-site visits and exchanges with the fragrance houses are conducted to reaffirm their compliance capabilities.

New fragrance creations submitted by the fragrance houses are approved only after an evaluation process. Documentation created by the supplier ensures that fragrances comply with the "Fragrance Restriction List" and any special requirements addressed during the briefing process. This involves obtaining a "Fragrance Compliance File": with this Beiersdorf-specific questionnaire, we request all relevant information to validate global regulatory compliance and adherence to the "Fragrance Restriction List," with written and signed confirmation.

Before a new version of the list is published and becomes valid, fragrance houses are invited to comment on a draft version. This open dialog helps avoid technical barriers to new creations. Once the commenting period concludes, the final version is sent to the regulatory contacts within the fragrance houses, along with a deadline for implementing the new restrictions into their IT systems. After implementation, Fragrance Houses must send a confirmation of compliance.

Actions Related to Pollution

In order to avoid and reduce the identified material negative impacts related to environmental pollution, the Consumer Business Segment is implementing concrete actions explained below.

Consumer

Phase-out of cyclomethicone
Description: The action overview for 2030 focuses on the phase-out of cyclomethicone, a significant source of SVHCs (D5/D6) in the Consumer product portfolio. This substance, classified in the EU as very

persistent, which means it is only slowly biodegradable, and very bioaccumulative, was targeted for phase-out by the R\&D leadership team in April 2019.

Scope: The action plan covers the entire Consumer Business Segment on a global scale.
Time horizon: The completion timeline for this key action for NIVEA and Eucerin products marketed in Europe extends to 2025 and globally to 2030.

Expected outcome: We strive for a significant reduction in the usage of SVHCs, thereby contributing to policy objectives and targets aimed at minimizing environmental hazards.

Progress: A downward trend in the annual volume is notable: Compared to 2019, the annual volume of cyclomethicone has decreased by $64 \%$.

Environmental Performance Assessment Process

Description: An "Environmental Performance Assessment Process," which includes ecotoxicological criteria and classifications, was approved by the R\&D leadership team in February 2019, and has been in use ever since. The guidelines for both new and existing cosmetic ingredients have been implemented, ensuring that no new persistent ingredients enter the raw material portfolio. This process provides clear guidance for Environmental Assessment based on hazard data, with criteria that include persistency, bioaccumulation, and aquatoxicity.

Scope: The process covers the Consumer Business Segment and pertains to our own operations on a global scale.

Time horizon: This is an ongoing action; a specific completion timeline has not been set.

Expected outcome: The primary expected outcome is to reduce the usage of persistent ingredients in the product portfolio. This action contributes to the objectives of the Beiersdorf policy "SOP Selection Criteria for Raw Materials."

Progress: The "Environmental Performance Assessment Process" has been actively used since its approval in 2019, ensuring the continual evaluation and exclusion of persistent ingredients from the company's raw material portfolio.

Beiersdorf has currently not implemented significant action plans in relation to the topics air and water pollution in the upstream value chain and regarding microplastics. Actions concerning downstream microplastic pollution typically involve addressing cosmetic ingredients that may enter the environment through wastewater effluents. Since our company has already largely discontinued the use of microplastics as defined by the "United Nations Environment Programme" (UNEP), we consider this impact to be sufficiently mitigated. There are no additional actions to be reported for 2024.

While we recognize the importance of minimizing upstream pollution, such as emissions or contaminants introduced during the production and sourcing stages, these impacts largely fall outside our direct operational control. Our ability to influence these areas is limited to ensuring compliance with our Supplier Code of Conduct, which already encompasses stringent environmental and social criteria. Compliance with the supplier code of conduct is monitored and addressed under chapter "ESRS S2 Workers in the Value Chain."

Targets Related to Pollution

Consumer

$100 \%$ of cosmetics free from synthetic polymer microparticles by 2032
A restriction on Synthetic Polymer Microparticles (SPM) has been in place in the EU since October 2023. The transition times are four years for rinse-off products, and six years for leave-on products. Our commitments exceed regulatory requirements, as they consider SPM on a raw material level and have implemented a global pledge, not just limited to the EU region. Many SPMs lose their particulate nature when incorporated into cosmetic formulations, thus falling outside the restriction's scope.

To address our material negative impacts related to pollution associated with microplastics, we defined a target in the reporting year which is as follows: $100 \%$ of cosmetics free from synthetic polymer microparticles.

This target is aligned with the objectives set out in the "Environmental Policy" and is planned to be achieved by 2032 (baseline year: 2024).

The target scope is global, covering various activities and the entire value chain. It involves all affected stakeholder groups and mandates that methodologies and significant assumptions used to define targets, including selected scenarios and data sources, align with national, EU, or international policy goals. The target is absolute, with a complete phase-out planned. As previously stated, the efforts of Beiersdorf surpass EU regulations, eliminating "United Nations Environment Programme (UNEP) Microplastics" in the EU for NIVEA by 2021 and for Eucerin by 2023.

Regarding target performance, no progress has been recorded yet, since 2024 has been the baseline year. Monitoring and review processes are in place, with raw materials evaluated against the SPM restriction definition from October 2023, tracking progress meticulously.

Stakeholders have not been involved in target setting. For environmental targets, this initiative is science-based, highlighting the objective difference between UNEP-Microplastics and SPM. While all UNEP-Microplastics are SPMs, not all SPMs are UNEP-Microplastics. This target is more ambitious as it includes persistent polymers that, although soluble in cosmetic formulations, persist in the environment. Hence, this target surpasses standard requirements significantly.

Use of 100\% biodegradable polymers in European product formulations by the end of 2025 We intend to use only biodegradable polymers in our European product formulations by the end of 2025 (absolute). With this target, we address the negative impacts regarding microplastics and on water resources in the downstream value chain, thereby minimizing the risk of future regulatory restrictions. The target therefore contributes to achieving the ambitions formulated in the "Environmental Policy."

Polymers are molecules that consist of many recurring subunits. They are commonly used in cosmetics and provide various product properties, such as increased water resistance in sunscreen products. Many polymers containing organic carbon are biodegradable - that is, they can be fully broken down into water and carbon dioxide by microorganisms such as bacteria or fungi. However, this is not the case with other polymers, which leave chemical substances in the environment. We are gradually phasing out the use of such non-biodegradable polymers in order to reduce potential environmental impacts.

To this end, we evaluate all raw materials in terms of their biodegradability. The evaluation is based on Annex XIII of the European REACH Regulation and the corresponding "Guidance on Information Requirements" (Chapter R.11). The criteria for the persistence of substances contained in these documents define the timescale for a molecule to be considered biodegradable. On this basis,

we identify polymers that are not sufficiently biodegradable and that should be eliminated from our European product formulations by the end of 2025.

To achieve this goal, we are not only replacing ingredients but also developing completely new polymer technologies. We report separately on the raw material group of silicones, which comprises dimethicone and cyclomethicone, among others. While silicones do degrade in nature over time, they are not biodegradable by definition due to their chemical composition - as they do not contain any organic carbon in the polymer chain. We therefore consider them separately from other polymers and are working to reduce their use as well.

In comparison with 2018, we already used $69 \%$ fewer non-biodegradable polymers in our European product formulations in the reporting year. The base value in 2018 was 978 kt .

Stakeholders were not involved in setting the targets.
Beiersdorf has currently not set any targets in relation to the topics air and water pollution in the upstream value chain. Beiersdorf actively tracks the Code of Conduct (CoC) coverage of its suppliers to ensure compliance with the environmental requirements outlined in the CoC. Beiersdorf has also set a specific target to enhance and monitor this coverage, thereby addressing upstream pollution. More information is given in chapter "ESRS 52 - Workers in the Value Chain."

The assessment of raw materials used at Beiersdorf covers both human and environmental toxicity as well as an assessment in context of applicable regulations. As the main criteria for the identification of SVHC are in conflict with the requirements of the cosmetic product regulation or with Beiersdorf's internal policies on human and environmental safety, no further targets are set for SVHC in the downstream value chain.

ESRS E3 - Water

Material Impacts, Risks, and Opportunities

In the double materiality assessment, we have identified negative impacts and risks in relation to water consumption and withdrawals in our own operations and upstream value chain.

At Beiersdorf and its Consumer and tesa Business Segments, we use water to manufacture our products, and it is an important ingredient in our product formulations. In addition, processes such as steam generation, refrigeration and chillers require water to operate. Our production sites therefore draw fresh water from various sources, including groundwater and third-party water. Water scarcity can significantly affect the production processes by interrupting essential processes and causing delays, efficiency losses and higher costs.

Beiersdorf uses the World Resource Institute's (WRI) "Aqueduct 4.0 Water Risk Atlas" to determine which of our sites are located in areas at water risk, including areas of high-water stress. This atlas translates complex hydrological data into indicators of water-related risks. The Consumer Business Segment has identified eight sites and the tesa Business Segment has identified two sites that are located in areas at water risk, including areas of high-water stress. These areas are characterized in the "Aqueduct 4.0 Water Risk Atlas" by the "Total Water Risk" indicator. This "Total Water Risk" measures all water risks in aggregate by combining indicators for risks related to physical water quantity and quality, groundwater stress, regulatory and reputational risks, among others. The ten affected sites are located in areas that are classified as "high" or "very high" on the "Total Water Risk" indicator.

A detailed overview of all identified impacts, risks and opportunities and the methodology used for the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

Policies Related to Water

Beiersdorf has introduced several policies to reduce the negative impact in the area of water. These policies support the management of significant impacts, risks, and opportunities related to water and address the key issues of water consumption and water withdrawal identified in the double materiality analysis. The topic of marine resources is not covered by the guidelines, as it is not considered material for Beiersdorf. Additionally, the guidelines do not include provisions focusing on water consumption in areas affected by water risks within our upstream and downstream value chain.

Consumer
Beiersdorf Environmental Policy

In the "Environmental Policy," the Consumer Business Segment stipulates its commitments and ambitions regarding various environmental topics, including water management. The aim is to continually work to reduce water consumption in production processes - where the majority of water withdrawal occurs - and to implement closed water cycles at production sites.

The key contents of this policy include the following:

1. Reduction of water consumption: The policy focuses on reducing water consumption across production and the value chain. This includes promoting efficient water use and minimizing water waste in both manufacturing and consumer use.
2. Wastewater treatment: The policy demands modern, effective processes to treat wastewater, aiming to ensure that water discharge meets stringent quality standards and adheres to local discharge regulations.
3. Water risk analyses: We utilize widely established tools such as the WWF's "Water Risk Filter" (WRF) and the WRI's "Aqueduct 4.0 Water Risk Atlas" to evaluate and respond to water risks within our operations, particularly in high-risk areas. We are also involved in ongoing dialog with the WWF as part of our broader water risk management efforts.
4. Use of renewable water sources and recycling: We are committed to using renewable water sources and implementing advanced recycling technologies wherever viable to further reduce the business segment's overall water footprint. By treating and reusing water in production processes, we can increase operational efficiency, and meet evolving regulatory requirements. This approach not only supports the company's water conservation efforts but also reduces long-term operating costs.
5. Product development: We aim to develop products that reduce water consumption,during both production and consumer use. This is aligned with our sustainability agenda CARE BEYOND SKIN, which seeks to promote water efficiency throughout the product lifecycle.

Our corporate water reduction target and its underlying metrics are also validated by external auditors annually to ensure all externally reported data is accurate.

Site-specific targets for sites of high risks are not yet in place. This is primarily due to the ongoing development of tailored strategies that require further detailed local assessments and consultations with stakeholders like the WWF. We are committed to ensuring that these future policies will address the distinct needs and risks of each site in areas of high water stress.

For further details on the "Environmental Policy," please refer to chapter "ESRS E1 - Climate Change."

tesa
tesa Environmental Guidelines
tesa has established the "Environmental Guidelines" to protect the environment and to support, among other things, risk mitigation as well as the safe and sustainable sourcing and usage of water globally. The "Environmental Guidelines" focus on water conservation and the promotion of efficient processes, while taking local circumstances and needs into account as well as complying with local regulations. The "Environmental Guidelines" require water usage to be reported and monitored internally. Water sources to be reported in this context are groundwater and third-party water.

The tesa sites are required to apply water management including:

• water consumption management (monitoring the quantity and quality of water withdrawals and discharges),
• minimization of potential impacts on water scarcity and reduction of emissions to water through innovation, best practices, and continuous controlling, and
• regular evaluation of internal and external developments that might impact business practices in the future (e.g., forward-looking process technologies, legal changes, community water issues).

The "Environmental Guidelines" emphasize the minimization of impacts on water scarcity through the adoption of innovative technologies, best practices, and continuous controlling. The policy does not explicitly address water treatment or the design of products and services with respect to water-related issues.

We furthermore take preventive measures to avoid accidents. For example, liquids that pose a threat to water are only ever discharged, refilled, or stored in areas that are equipped with appropriate collection facilities. These measures are annually reviewed through external ISO 14001 audits.

We collect water-related data on aspects such as water consumption and wastewater volumes at all tesa production sites on an annual basis. The "Environmental Guidelines" apply to all tesa sites. The Executive Board/the Group Executive Committee (GEC) holds the highest level of accountability for the implementation of the "Environmental Guidelines." The policy is made available to all stakeholders through tesa's official website.

Actions Related to Water

To achieve its water-related policy objectives, Beiersdorf has implemented an action plan that constitutes a roadmap for water management. Our actions are not contextually focused towards sites located in areas at water risk, but we are aware of all sites that are located in areas at water risk, including areas of high water stress. All of the actions described below contribute to achieving our Group-wide goal of significantly reducing water consumption by 2025.

Consumer

Training and capacity building for employees on water conservation
Description: Technical and sustainability experts at each Consumer production site implement various water conservation actions, such as "Closed Circuit Reverse Osmosis" (CCRO) technologies, optimized cleaning cycles and water reuse systems. These efforts are coordinated through the "Sustainability in Manufacturing" (SIM) initiative and the "Global Water \& Cleaning Community," which both ensure factory-level alignment. Employees receive monthly exchanges on these technologies and best practices to enhance their knowledge and promote water-efficient operations. The "Global Water \& Cleaning Community" platform allows water experts to discuss progress with the SIM team, while also exploring new (digital) approaches to reducing water consumption in partnership with specialist institutes. We also use external expertise for training and to optimize operations, aiming to ensure a dynamic approach to water conservation.

Scope: Factories globally

Time horizon: Ongoing

Expected outcome: By implementing these measures, we expect our employees to gain increased technical knowledge and be able to further apply water conservation practices in production processes. This can lead to a consistent approach to water management and continuous improvement in water efficiency across production processes, which in turn contributes to achieving Beiersdorf's 2025 water reduction target.

Continuous improvement of production processes

Description: At our Consumer Business Segment, we have deployed modern equipment and technologies to address high water consumption, particularly in cleaning processes. All our production sites treat their wastewater, either within their own wastewater treatment plants (WWTP), in WWTP within industrial parks, or externally located in third-party WWTP, and we do not discharge untreated wastewater water into the environment. Treated wastewater can then be reused for cooling, irrigation, or sanitation at the company's production sites. This contributes to keeping our "Leadership in Energy and Environmental Design" (LEED) certification, ensuring that all sites meet global sustainability standards. Regular reviews by internal and external experts also ensure that facilities meet the latest standards and processes are continuously optimized.

Moreover, we collaborate with water suppliers, local authorities, and neighboring companies to foster a community- and best-practice-focused approach to sustainable water management.

Scope: Production sites globally

Time horizon: 2025

Expected outcome: Our goal is to reduce water consumption, enhance collaboration with external stakeholders, and comply with LEED certification standards to further support our sustainability targets.

Implementation of reverse osmosis and water recovery technologies

Description: We introduce closed-circuit reverse osmosis (CCRO) and other water recovery technologies to enhance water reuse across our production sites. In 2023, the first reverse osmosis filtration unit was installed in our Indian factory. We plan to test and implement these technologies in ten additional production sites.

Scope: India, and additional factories globally

Time horizon: Continuous, with expansion and upgrades through 2025.

Expected outcome: The measures can reduce the water consumption intensity by up to $30 \%$ at the initial Indian site. We expect to achieve further savings at our other factories, bringing us closer to our company-wide target of significantly reducing water consumption by 2025.

Closed-loop water systems and maximized water reuse

Description: In order to maximize water recovery and reuse, we are conducting engineering studies to implement closed-loop water systems at selected production sites. The first study is underway at our Bangkok site. In next phases, we will test and implement similar systems at our Silao and Tres Cantos sites. These measures are also part of our commitment to achieving our 2025 water reduction targets.

Scope: Bangkok, Thailand, as well as Silao, Mexico, and Tres Cantos, Spain
Time horizon: 2025

Expected outcome: Our efficiency measures aim to significantly reduce water consumption. A pre-study at our Bangkok site has shown a potential reduction in water withdrawal of 50 to $60 \%$. Combined with additional efficiency projects, this could result in a cumulative reduction of $70 \%$ compared to 2020 at this site.
tesa
Shutting down steam humidification units to reduce water usage
Description: As a safety measure against charge dissipation, humidification units were originally installed in areas that handle large amounts of solvents. Today, there are other, more efficient ways to deal with such hazards, so newer and safer practices at the tesa plant in Hamburg now allow for humidification units to be shut down. We have therefore initiated a project to shut down the humidification systems, which has already been approved internally. Subject to final regulatory approval, the project is expected to be completed by the end of 2025.

This action helps achieve the target of the "Environmental Guidelines" to reduce water consumption and to regularly evaluate internal and external developments related to new technologies.

Scope: tesa Plant Hamburg GmbH
Time horizon: 2025
Expected outcome: We expect the project to save $3,600 \mathrm{~m}^{3}$ of water per year.
Installation of additional cooling water circulation systems to reduce groundwater usage and wastewater discharge
Description: To reduce the reliance on water and its discharge into waterways, the tesa plant in Offenburg plans to install additional circulation systems for cooling water, starting with one specific coating line. This action relates to our objectives of reducing water consumption and implementing best practices.

It furthermore helps to achieve the target of the "Environmental Guidelines" to reduce water consumption.

Scope: tesa Plant Offenburg GmbH
Time horizon: 2025 to 2027
Expected outcome: We expect to save $10,000 \mathrm{~m}^{3}$ of groundwater per year for the pilot phase at the coating line (Hänge 5).

Targets Related to Water

Consumer
The global corporate water reduction target, which is a voluntary target, covers all Consumer factories and promotes water efficiency across the board: By 2025, we aim to reduce consumption per manufactured product by $25 \%$ (vs. 2018 baseline). This aim to ensure that all sites, regardless of whether they are located in areas at water risk, are pursuing efforts to reduce water consumption and improve water quality.

Beiersdorf's water-related targets are directly in line with the ambitions set out in the "Environmental Policy" particularly in the "Regenerative Water Environments" field of action.

Beiersdorf's water-related targets are based on a combination of scientific methods and data-driven approaches. These include comprehensive water risk analyses at all production sites to identify and

minimize potential risks, as well as the use of primary data on water consumption. These targets are in line with global water-related sustainability goals, particularly in view of increasing climate challenges and water scarcity. The targets were drafted by consulting internal stakeholders, including the sustainability and environmental teams, factory operations, and the local production centers and Safety, Health, and Environment (SHE) teams.

In 2018, our global water intensity in the production centers was 504 liters/1,000 products manufactured, which serves as the baseline for our water targets. By 2025, we aim to achieve a global water intensity of 378 liters/1,000 products manufactured, which corresponds to a $25 \%$ reduction. In 2024, water consumption per product manufactured was reduced by $12 \%$ compared to 2018 (base year) to 446 liters/1,000 products.

Despite our efforts and the strides we have made, we acknowledge that external factors and unforeseen obstacles may cause delays to our planned projects and may impact our ability to fully meet our 2025 water conservation targets as hoped. Nevertheless, we remain committed to implementing all planned water conservation actions.

While our Consumer Business Segment does not yet have site-specific targets for areas at water risk, the global "Environmental Policy" applies to all sites, including those located in areas of high water stress. The policy includes water reduction ambitions and aims to ensure the implementation of water conservation actions at all sites. This enables us to minimize water-related risks for the Consumer Business Segment worldwide, even in areas where specific local targets are still being developed.

In addition, we are developing localized water targets for areas at water risk, with the aim of tailoring our water management to specific regional needs. These site-specific targets will be established in the course of 2025, informed by ongoing assessments using the WWF's WRF and the WRI's "Aqueduct 4.0 Water Risk Atlas." We are developing customized water reduction targets beyond 2025 as part of our strategic partnership with the WWF.

tesa

For our tesa Business Segment, we currently do not have defined measurable water-related targets. Water tracking is managed via the "SoFi" database. This is mandatory for production sites within the tesa Business Segment which are certified according to ISO 14001. These sites are subject to regular internal audits as well as external environmental audits in the context of matrix certification. Every year, we keep track of water data at our production facilities such as water consumption and effluent quantities and also perform a regular water risk assessment. We also report the results through CDP.

Metrics Related to Water

Water Metrics

	Unit	Consumer	tesa	Total
Total water consumption	$\mathrm{m}^{3}$	577,252	153,234	730,486
Total water consumption in areas at water risk, incl. areas of high water stress	$\mathrm{m}^{3}$	404,974	53,189	458,163
Total water recycled and reused	$\mathrm{m}^{3}$	161,673	0	161,673
Total water withdrawals	$\mathrm{m}^{3}$	$1,432,875$	452,737	$1,885,612$
Total water discharges	$\mathrm{m}^{3}$	855,624	299,503	$1,155,127$

Methods and significant assumptions

The measurement of water-related metrics is based on quarterly data input from the Safety, Health and Environment (SHE) managers at each plant. This data is collected using the "Sphera SCCS" tool, which allows for standardization and consolidation of information across all sites. Thematic experts from our Sustainability in Manufacturing (SIM) team validate the data on a quarterly basis to ensure accuracy, consistency and adherence to defined methodologies.

Key assumptions include the reliability of the data provided by the SHE managers at the plant level and the effectiveness of the validation process performed by the SIM team experts.

The data relates to our production sites only and does not include our office locations. All data is primary data and has not been estimated or extrapolated.

Currently, water-related metrics are validated internally by the SIM team's thematic experts, rather than by an external body other than the auditor. The SIM team conducts quarterly comprehensive reviews to ensure data integrity and compliance with internal and external reporting standards. Although the validation process is robust, future validation by an independent external body could be considered to increase transparency and provide additional assurance on the accuracy and reliability of the metrics.

ESRS E4 - Biodiversity and Ecosystems

Material Impacts, Risks, and Opportunities

Beiersdorf understands the impact that palm oil and natural rubber have towards biodiversity and ecosystems. In our double materiality assessment, we identified both raw materials as key commodities for our business throughout the value chain, and the continued availability of them is crucial for the success of our company. Yet the expansion of oil palm and natural rubber plantations frequently entails the clearing of extensive areas of (tropical) rainforest and other valuable ecosystems, leading to significant biodiversity loss due to large-scale deforestation and habitat destruction. This is particularly the case in Indonesia and Malaysia, which accounted for around $82 \%$ of global palm oil production in 2024. Indonesia has one of the highest deforestation rates globally, largely driven by palm oil expansion. This is why we have identified land degradation in the upstream value chain as a material topic for Beiersdorf. Overall, Beiersdorf sources both palm oil-based raw materials and natural rubber in quantities that account for only a very small share of global production.

Our company primarily sources palm (kernel) oil derivatives, which are integral components in a wide range of products; including shampoos, shower gels, and creams. The derivatives supply chain is multitiered and involves a large number of players. Therefore we have only limited control over sourcing.

In our double materiality assessment, we did not identify negative impacts with regards to soil sealing and desertification. We have also determined that our own sites do not have a material negative impact on biodiversity-sensitive areas. We furthermore did not identify any operations to have negative impacts on threatened species.

A detailed overview of all identified impacts, risks and opportunities and the methodology used for the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

Policies Related to Biodiversity and Ecosystems

We aim to limit our negative impact on ecosystems and biodiversity to meet our legal, environmental and social responsibilities. To achieve our commitments, Beiersdorf sets binding biodiversity standards in our corporate policies. In 2025 tesa is planning to introduce a policy dedicated to the sustainable sourcing of natural rubber. Until now, there has not been a separate policy for natural rubber in place, as most of the raw material we purchase is already certified.

Beiersdorf's policies on palm oil include production and sourcing practices that aim to preserve or promote conditions for biodiversity. This commitment is reflected in initiatives such as the "Sustainable Palm Roadmap," which includes principles to prevent deforestation, promote sustainable cultivation practices and proactively engage with stakeholders to protect ecosystems and livelihoods in sourcing regions.

Sustainable Palm Policy

Beiersdorf's "Sustainable Palm Policy" underscores our commitment to environmental stewardship as well as preserving biodiversity; it addresses our material impacts on biodiversity, resulting in particular from the use of palm (kernel) oil derivatives. The policy gives guidance to mitigate the adverse effects of palm oil cultivation on ecosystems, and to promote sustainable agriculture practices. The policy is designed to align our business performance with biodiversity conservation. It supports smallholder and landscape projects in sourcing countries and aims to increase the availability of physical, sustainably certified palm-based raw materials. The "Sustainable Palm Policy" does not cover aspects related to oceans and/or seas practices, as it is not material to Beiersdorf.

The key environmental objectives of the "Sustainable Palm Policy" are as follows:

1. Prevention of deforestation and ecosystem conversion:

We intend to ensure that palm oil sourcing does not lead to deforestation or the conversion of primary and secondary forests or other natural ecosystems. By preventing the conversion of natural habitat into agricultural land, we aim to help protect biodiversity-rich areas. Forests provide crucial habitat for countless species, and their preservation is essential to maintaining the biodiversity that supports ecosystem services.

Addressed impact driver on biodiversity loss: Climate change, land use change, direct exploitation, impacts on ecosystems, impacts on the status of species and ecosystem services.

2. Conservation of High Carbon Stock (HCS) and High Conservation Value Areas (HCVA):

We want to avoid the development of palm oil plantations in HCS and HCVA as defined under the "High Carbon Stock Approach" (HCSA). HCS areas are typically rich in biodiversity and play a significant role in carbon sequestration. HCVA are critical for the survival of endangered species and the maintenance of ecosystem functions. Protecting these areas, e.g. through banning cultivation and fires on peatlands and other HCS areas, helps ensure the survival of many species and the health of ecosystems.

Addressed impact driver on biodiversity loss: Climate change, land use change, direct exploitation, impacts on ecosystems, impacts on the status of species and ecosystem services.

3. Promotion of sustainable landscape management:

Our goal is to implement sustainable landscape management practices to maintain the ecological balance and support biodiversity. Sustainable landscape management involves maintaining the integrity of ecosystems while allowing for sustainable agricultural practices. This includes creating buffer zones around protected areas, which serve as transitional habitat and corridors for wildlife, thereby reducing the fragmentation of habitat and supporting biodiversity.

Addressed impact driver on biodiversity loss: Climate change, land use change, direct exploitation, impacts on ecosystems, impacts on the status of species, invasive species, ecosystem services.

4. Promotion of sustainable palm oil cultivation:

We aim to promote the sustainable cultivation of palm oil. Sustainable palm oil cultivation minimizes habitat destruction and promotes biodiversity-friendly cultivation practices. It reduces the need to expand agricultural land into forested areas, thus conserving wildlife habitat.

Addressed impact driver on biodiversity loss: Climate change, land use change, direct exploitation, impacts on ecosystems.

The policy moreover promotes working with supply chain partners to trace palm-based raw materials back to the refinery, mill, and plantation level. The policy addresses social consequences by including social principles that prohibit exploitation, respect human and workers' rights, ban child and forced labor, and support local communities' land rights. To acknowledge dependencies on palm-based raw materials as well as to addresses transition risks, we implemented a "Sustainable Palm Roadmap." It focuses on sustainability certification, supply chain transparency, and transformation in sourcing countries.

The "Sustainable Palm Policy" does not explicitly tackle biodiversity and ecosystem protection at sites within our own operations. This is because we have not identified material impacts, risks and opportunities related to biodiversity and ecosystems for these sites.

The policy scope includes all palm-based raw materials purchased by Beiersdorf's Consumer Business Segment, products manufactured in Beiersdorf's own global operations and third-party manufacturer operations as well as suppliers and their entire upstream value chains. The Sustainability Council oversees the implementation of the policy, and the Vice President Sustainability approves it.

Third-party initiatives addressed by the policy are the "Roundtable on Sustainable Palm Oil" (RSPO) and the "Forum for Sustainable Palm Oil" (FONAP), as well as standards like the "High Carbon Stock Approach" (HCSA), the "UN Guiding Principles for Business \& Human Rights" and the "International Labor Organization's" (ILO) conventions. It furthermore considers the interests of key stakeholders such as smallholder farmers and local communities, including Indigenous peoples (see chapter "ESRS S3 Affected Communities"), as well as supply chain partners and multi-stakeholder initiatives.

We make the policy accessible and actionable for interested parties by publishing it on our website and informing our relevant suppliers. Additionally, as part of our Code of Conduct process and through our grievance channels, we review compliance with our policies.

Actions Related to Biodiversity and Ecosystems

Palm oil supply chains are complex and involve multiple stakeholders, including smallholder farmers, brokers, and large estates. This complexity makes it difficult to trace the origin of palm oil accurately. Using a multi-lever approach, we have developed and are implementing a range of actions to respond to this challenge and address our material impact on biodiversity. The actions are intended to make a positive contribution to achieving the environmental goals outlined in the "Sustainable Palm Policy."

Sustainable certification

Description: Our goal is to only use sustainably certified palm (kernel) oil and derivatives, which means that $100 \%$ of the palm-based raw materials we use in our products need to come from sustainable sources in accordance with the RSPO's "Mass Balance" model.

Scope: Upstream value chain
Time horizon: Achieved and maintained since 2020.

Expected outcome: According to the "Mass Balance" model, products can be certified that contain both RSPO-certified and non-certified palm oil. In this context, companies must ensure that the processed quantity of RSPO-certified palm oil corresponds to the purchased quantity of RSPO-certified palm oil. This model is particularly relevant to the use of derivatives based on palm (kernel) oil, as the derivative supply chains are even more complex than the palm oil supply chains. Therefore, there is no infrastructure for an RSPO-segregated supply chain, i.e., a supply chain in which RSPO-certified and non-certified derivatives are traded separately.

Sourcing through deforestation-free sources

Description: We continue to work toward our goal of purchasing our palm (kernel) oil derivatives from deforestation-free sources. As part of this process, the "Action for Sustainable Derivatives" (ASD) initiative is gathering comprehensive information about the upstream supply chain by contacting Beiersdorf's direct suppliers to create transparency along the entire palm oil supply chain (further information can be found in chapter "ESRS 53 - Affected Communities"). This information serves as the basis for the use of the satellite monitoring program "Nusantara Atlas," which allows us to measure our progress toward deforestation-free supply chains.

Scope: Upstream value chain
Time horizon: Annual implementation since 2023.
Expected Outcome: In the summer of 2024, the "Nusantara Atlas" program published its results for 2023. On this basis, we were able to prove that approximately $64 \%$ of the palm-based raw material volume from palm (kernel) oil mills in Indonesia and Malaysia was of deforestation- and conversion-free origin. In doing so, we comply with the requirements of the "European Union Deforestation Regulation" (EUDR), cut-off date December 31, 2020. The EUDR imposes restrictions on the sale of certain products in the EU market if they are linked to deforestation or violations of land and human rights. It specifically targets key commodities such as palm oil, wood, or rubber.

FONAP landscape project

Description: Beiersdorf leverages its partnership with the FONAP and a consortium of 26 partners to support a project in Sumatra, Indonesia. The initiative aims to address biodiversity conservation and to promote sustainable palm oil cultivation in a critical ecological area.

Scope: Upstream value chain. The project focuses on a specific location in Sumatra, which is known to be one of the last refuges for endangered species such as the Sumatran orangutan, Sumatran tiger, and Sumatran elephant.

Time horizon: These actions were extended from March 2022 to September 2024.
Expected outcome: The buffer zone around the national park serves as a critical habitat for threatened species. The primary intended outcome is to help preserve this buffer zone through the implementation of sustainable landscape management, improved water management, and the promotion of more sustainable oil palm cultivation practices.

Projects in collaboration with the WWF

In collaboration with the WWF and Evonik, Beiersdorf is involved in biodiversity projects in Indonesia and Malaysia. In West Kalimantan, Indonesia, smallholder farmers are being trained in sustainable palm oil cultivation practices with the aim of certifying 200 plots of land to RSPO standards and securing their legal recognition to protect the habitat of local flora and fauna. In Sabah, Malaysia, a landscape project aims to create a forest corridor for wildlife such as orangutans and promote sustainable agricultural practices. Both initiatives actively contribute to biodiversity conservation by preventing human-animal

conflicts and protecting natural resources. The projects are described in detail in chapter "ESRS S3 Affected Communities."

Our current actions related to biodiversity and ecosystems do not involve the use of biodiversity offsets. Therefore, there are no aims, key performance indicators, or financing effects related to biodiversity offsets to report. Additionally, we presently have not incorporated local and indigenous knowledge or nature-based solutions into our biodiversity and ecosystem-related actions.

Targets Related to Biodiversity and Ecosystems

Beiersdorf is currently developing a biodiversity strategy and targets related to biodiversity and ecosystems. We aim to publish these targets by our next reporting cycle. Therefore, no targets are reported for 2024.

To date, we have set the following ambitions and use both qualitative and quantitative indicators to evaluate our progress:

• Beiersdorf aims to achieve a deforestation-free palm supply chain by end of 2025. This amplifies our commitment to zero deforestation of primary and secondary forests and natural ecosystems from mid-November 2018.
• Since the end of 2020, we have sourced 100\% of our palm oil-based raw materials from sources certified as sustainable according to the RSPO's "Mass Balance" model and maintain this target annually.
• For the project in West Kalimantan, Indonesia, Beiersdorf has set a goal to certify at least 200 smallholder farmers according to the RSPO standard by 2026.
• In addition, we track the number of smallholder farmers involved in our sustainability projects and the area of land under sustainable management practices.

ESRS E5 - Resource Use and Circular Economy

Material Impacts, Risks, and Opportunities

Resource use and the circular economy are important components of our sustainability strategy. In our double materiality assessment, we have identified material impacts and risks in these areas, particularly with regard to the inflow and outflow of resources, and waste.

The use of large quantities of raw materials in our products, the disposal of these products and their packaging at the end of the product's life cycle, and the design of the packaging can all affect the amount of waste produced and thus have a negative impact on the environment. Products in the Consumer and tesa business segments are composed of various materials and differ fundamentally in their characteristics. Products in the Consumer Business Segment are primarily aimed at skin care, while tesa's products are used both in industrial processes and in the home. Product design in both business segments is based as far as possible on appropriate circular principles, with the following criteria playing a key role: reusability, remanufacturing, recycling, recirculation by the biological cycle, and optimizing the use of the product or material through other circular business models.

As both business segments use plastic packaging and must therefore take regulatory requirements into account, we have also identified material financial risks arising from resource inflows and outflows. Through targets for improving the recyclability of packaging at the end of its life cycle and increasing the proportion of recycled (secondary materials) and bio-based materials used, we want to help reduce the risk arising from new legislation such as the EU's plastic tax as part of the "European Green Deal," while also meeting our obligations as a manufacturer of consumer goods. Our targets also help reduce

the impact of the "European Packaging and Packaging Waste Regulation" (PPWR) on our packaging design.

A detailed overview of all identified impacts, risks and opportunities, and the methodology used for the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

Policies Related to Resource Use and Circular Economy

Beiersdorf and its business segments are committed to strengthening the circular economy and have addressed this matter in corresponding company policies. The circularity of our products, active ingredients and packaging is of great importance to us. From selecting the substances used to the design of products, we take a holistic approach that helps determine the recyclability of the raw materials we use and the impact they will have on the environment at the end of their life cycle.

The focus of the policies and fundamental approaches varies by business segment, as different raw materials and products are used. While packaging plays a major role in the Consumer Business Segment, it is much less important at tesa. For this reason, we set specific priorities depending on the segment in question.

Consumer

Beiersdorf Environmental Policy

The "Environmental Policy" is described in the chapter entitled "ESRS E1 - Climate Change;" it sets out how we want to reduce the impact of our business activities on the environment. The circular economy is a key aspect of the policy and defines our approach to improving the circularity of our products. In the areas of resource use and the circular economy, our "Environmental Policy" aims to increase the proportion of secondary raw materials used in our products, particularly in our packaging. The policy also addresses sustainable sourcing of raw materials and the use of renewable materials in our products. Our "Environmental Policy" covers the material negative impacts and risks we have identified both in our own operations and along the upstream and downstream value chain with regard to the sub-topics of resource inflows, resource outflows, and waste.

On the basis of this policy and our self-imposed targets, we derive actions which are then approved by the Executive Board.

The Executive Board is responsible for incorporating product sustainability into our Win with Care corporate strategy, as well as at the brand level. The Corporate Sustainability Team reports directly to the Executive Board. Our Sustainability Council maintains regular communications with the senior managers in Marketing, R\&D, and Supply Chain. The body reports on ongoing projects and monitors the status of target achievement. We deploy the expertise of different departments and involve external stakeholders such as customers, suppliers, sustainability consultancies, and NGOs to implement projects across different functions and value chains.
tesa
tesa Environmental Guidelines
The tesa Business Segment has its own globally applicable "Environmental Guidelines" (see chapter "ESRS E1 - Climate Change"). The sections on waste and resources, in particular, examine our approach to resources, waste and the sustainable sourcing of materials, while also addressing the material impacts our business has on resource inflows and outflows, and waste. Under the "Environmental Guidelines," the principles of "avoid, reduce and reuse" take precedence over disposal. The policy also requires our sites to document all relevant waste, which includes a description of the waste, the quantity, classification, and disposal routes. A record of whether resources, notably raw materials and chemicals, have been handled responsibly is also kept. Responsible and sustainable sourcing of raw materials, e.g. in accordance with FSC ${ }^{\circledR}$ certification criteria, is also part of the policy.

Actions Related to Resource Use and Circular Economy

Consumer

In a cross-departmental program, we have identified key long-term fields of action relating to our material impacts and risks with regard to the circular economy and resource use. The aim of the program was to develop areas of innovation consistent with our overarching sustainability targets and our Net Zero target.

With the following actions, we aim to reach not only our short-term targets for 2025 but also our new product ambitions for 2032.

Blue Horizon program

Description: Our "Blue Horizon" program has helped to identify levers that will allow us to determine long-term potential for improvement. The key is to reduce the weight of packaging, increase the use of secondary and bio-based materials, and use packaging systems that can be refilled multiple times to extend the life of the packaging.

The innovation process closely monitors our targets of reducing the use of fossil-based virgin plastics by the end of 2025, incorporating more recycled materials, and improving the recyclability of our products and packaging. Actions to achieve this target include reducing packaging materials, replacing fossilbased virgin plastics with recycled materials, and using bio-based plastics. Targets have been set for specific brands and product categories. The Corporate Sustainability department, the Sustainability Council, and the Executive Board all monitor the achievement of these targets.

Scope: All packaging in the Consumer Business Segment
Time horizon: By 2025
Expected outcome: The actions aim to reduce the use of fossil-based virgin plastic. By doing so, we aim to minimize the negative impacts identified as material with regard to resource outflows and resource inflows.

Progress: Reduction in the use of fossil-based virgin plastic in 2024: 16\%
"Women in Circularity" Initiative
Description: The "Women in Circularity" initiative is a social-environmental initiative that supports four plastic waste recycling organizations with a social business concept by providing donations from our COVID-19 aid program. Four recycling organizations are currently being supported, i.e. "Delterra" in Argentina, "Recycle Up! Ghana" in Ghana, "Green Worms" in India and "TakaTaka Solutions" in Kenya. A donation of $€ 4$ million is empowering the above-mentioned organizations to provide income and development opportunities for more than 1,600 women in the waste management sector. The initiative will help increase the capacity of these organizations to collect and recycle plastic waste to around 15,000 tons per year by expanding their plastic waste management infrastructure, including new recycling plants.

Scope: Argentina, Ghana, India, Kenya
Time horizon: Ongoing
Expected outcome: We expect the expansion of infrastructure to promote the recycling of plastic waste in emerging economies and create jobs and training programs to support women in the waste management industry. As such, the initiative is targeting the impact identified as material with regard to waste.

Progress: The organizations are currently building the necessary infrastructure and preparing for the start of operations. From 2025, we will be in a position to report on the progress achieved.

tesa
For our products in the tesa Business Segment, we are implementing actions that aim to reduce the use of fossil-based, primary raw materials, particularly plastic, while increasing the proportion of recycled or bio-based raw materials. The focus here is to switch to the certifiably sustainable sourcing of more biobased raw materials and to anchor sustainability assessments in product development. Implementation will be planned and managed by the business units.

Switching of product packaging

Description: An ongoing program that includes actions to switch the materials used in packaging in the Industry and Consumer business unit so that we can achieve our targets by 2025.

Scope: All packaging for products manufactured in-house by the tesa Business Segment (globally)
Time horizon: By 2025
Expected outcome: The actions aim to reduce the use of fossil-based virgin plastic by $50 \%$ compared to 2019. We are thus aiming to minimize the negative impacts identified as material with regard to resource outflows.

Progress: Reduction in the use of fossil-based virgin plastic in 2024: -14\%

Targets Related to Resource Use and Circular Economy

In the Consumer and tesa business segments, we have set ourselves specific voluntary global targets for resource use and the circular economy. Beiersdorf's targets in the field of circular economy, such as promoting recycling and reducing plastic waste, are closely linked to the objectives of the European Green Deal, which aims for a climate-neutral, resource-efficient, and circular economy by 2050.

Consumer

Targets

Target	Level of the waste hierarchy	Base year	Base value (t)	Target	2024
50\% less fossil-based virgin plastic in our packaging by 2025.	Not applicable	2019	69,616	$\begin{gathered} 50 \% \text { (in } \ \text { relative terms) } \end{gathered}$	$-16 \%$
Incorporation of 30\% recycled material in our plastic packaging by 2025.	Recycling	2019	-	30\% (in relative terms)	$16 \%$
Make 100\% of our packaging refillable, reusable or recyclable by 2025. This target is mapped by the two metrics "Design for recycling" and "Global recyclability."	Preparation for reuse	-	-	$\begin{gathered} 100 \% \text { (in } \ \text { absolute terms) } \end{gathered}$	"Design for recycling": 83\% "Global recyclability": 79\%

As announced last year, we now expect to reach our target for reducing fossil-based virgin plastic in 2026 rather than in 2025. This development is due to longer lead times for molds and equipment, as well as volume growth that was above expectations.

Our target to make 100\% of our packaging refillable, reusable, or recyclable by the end of 2025 relates to the end of the packaging life cycle. Since 2021, in order to make our progress with respect to recyclability measurable, we have been using the circular economy model promulgated by the "Ellen MacArthur Foundation." We also established "Design for Recycling," a further metric that requires packaging to be recyclable in at least one country from the outset, even if this is not yet globally possible given today's infrastructure. This means that all packaging that is already globally recyclable today also meets the "Design for Recycling" criteria. Both indicators - "Design for Recycling" and global

recyclability - have been applied to all types of packaging and materials we use (plastic, metal, glass, and paper) since 2022. We assess the recyclability of our products and the "Design for Recycling" digitally using a methodology developed by an independent certification body; the analysis relates to the proportion of recyclable materials in the total packaging weight. We then use these individual analyses to determine the recyclability of the overall portfolio.

Together with leading recycling experts, we are continuing to work on redesigning the packaging of our entire product portfolio. In order to make the most progress, we are focusing on the most impactful improvements. However, the global recycling infrastructure and assessment criteria for recyclability are still evolving and beyond our control. This applies, for example, to products with flexible packaging and small-format packaging, and is resulting in a delay in achieving the goal of 100\% recyclable, refillable, or reusable packaging by 2025.

We have therefore now adjusted our existing target: In addition to the proven packaging solutions of reuse and refill, we now aim to design 100\% of our packaging in accordance with the "Design for Recycling" criteria by 2032. In the reporting year, $83 \%$ of the packaging in our product portfolio met the "Design for Recycling" criteria.

For the 2032 time horizon, we have set ourselves ambitious targets that further demonstrate our motivation to design products with maximum circularity beyond their useful lives. These are detailed in the chapter entitled "ESRS 2 - General Disclosures."
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Targets

Target	Level of the waste hierarchy	Base year	Base value (t)	Target	2024
70\% of the materials used in our products and packaging to be made from recycled or bio-based material by 2030.	Recycling	2018	-	$\begin{gathered} 70 \% \ \text { (in relative terms) } \end{gathered}$	$25 \%$
Reduce the use of non-recycled fossil plastics (excluding adhesive masses and packaging) by a half by 2030.	Avoidance	2018	26.931	$\begin{gathered} \hline-50 \% \text { (in absolute } \ \text { terms) } \end{gathered}$	$14 \%$

Metrics Related to Resource Use and Circular Economy

Consumer

Most of our packaging is made of plastic as this material is not only light and extremely stable, but also flexible. This means that some of the materials we use are based on finite fossil resources and are often not recycled. Our targets and actions focus on optimizing our plastic packaging according to the principles of "avoid, reduce, reuse and recycle," thus helping to sustain the circular economy. To ensure that our actions are measurable, we have set ourselves global targets which can be found in the table in the section "Targets related to Resource Use and Circular Economy." Other important raw materials used in the packaging for our products are paper, glass, and aluminum.

We mainly use raw materials of natural origin, along with minerals in the manufacture of our products. The total amount of raw materials used in our cosmetic products and the raw materials of natural origin are listed in the table below. The total weight of raw materials used is divided into two components: raw materials of natural origin as measured by the "Natural Origin Index" and raw materials of natural origin that are sustainably sourced and subject to a certification system.

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Many different raw materials are needed to manufacture and package the products of the tesa Business Segment.

Both fossil and plant-based raw materials are used in the manufacture of the products. These materials are often used for plastic foils that must satisfy stringent technical requirements when used as carriers or cover film for adhesive tapes. In addition, some adhesive formulae, such as acrylate-based adhesives, are based on fossil raw materials. Bio-based raw materials such as paper, natural rubber, and adhesive resins are also used in the production of adhesive tapes. Through certifications such as FSC®, PEFC and comparable standards, we are committed to verifiably certified responsible sourcing of these raw materials. We want to increase the proportion of recycled or bio-based raw materials in the manufacture of our products, while reducing the use of non-recycled fossil plastics (excluding adhesive masses). To ensure that our actions are measurable, we have set ourselves global targets which can be found in the table in the section "Targets related to Resource Use and Circular Economy."
tesa uses plastics as well as paper and cardboard in its packaging. Currently, many plastics are not yet of recycled origin and some of the packaging itself cannot, as yet, be recycled. What is more, not all paper and cardboard is procured from sustainably certified sources. As is the case in product manufacturing, we are working hard to improve this situation.

Resource Inflows and Outflows

Resource inflows	Metric	Unit	Consumer	tesa	Total
Raw materials
Total raw materials used	Total weight of raw materials used in our products	Kt	851	103	954
Total consumption of raw materials of natural origin	Total weight of raw materials of natural origin in our products	\%	87	19	78
Total consumption of raw materials of biological origin, sustainably certified	Total weight of raw materials of natural origin, sustainably certified, in our invoiced products	kt	39	10	49
Packaging materials
Total use of packaging materials	Total amount of packaging materials used in our products	kt	173	14	187
Total use of packaging materials from non-fossil sources	Proportion of non-fossil raw materials used in our packaging materials	\%	59	60	59
Total use of packaging materials from non-fossil sources, sustainably certified	Proportion of non-fossil raw materials used in our packaging materials that are certified as sustainable	\%	3	51	7
Secondary material relative to total packaging consumption	Proportion of recyclates in our packaging materials	\%	19	7	18
Sum of raw materials and packaging (fossil-based)	Sum total of packaging materials and raw materials of fossil origin	kt	922	89	1,011
Sum of raw materials and packaging (non-fossil-based)	Sum total of packaging materials and raw materials of non-fossil origin	kt	954	28	982
Resource outflows
Proportion of recyclable packaging	Global recyclable packaging	\%	79	-	-

Methods and significant assumptions

As the negative impacts identified as material are concentrated in the downstream value chain and not in our own operations, no waste metrics are reported.

Consumer
The data on resource inflows and outflows are derived from direct measurements conducted by us on the basis of quantities purchased and consumed.

We used the following criteria to classify products designed according to circular principles (in our case, primary packaging):

• all plastic packaging
• all paper packaging
• all glass packaging
• all aluminum packaging

The secondary materials, which we mainly use in our packaging, are provided by external partners. Double counting of materials during data collection is avoided by clearly labeling the materials internally.

Our targets aim, in particular, to expand circularity in product design, increase the volume of recyclable materials used, minimize the use of primary raw materials, and source and utilize renewable resources sustainably.

Our objectives do not take account of: waste management, including preparations for the proper treatment of waste, and other aspects relating to the use of resources or the circular economy.

The "Natural Origin Index," which quantifies the proportion of natural components in a given raw material, is based on ISO 16128-1:2017 and ISO 16128-2:2017. The index is defined by raw-material suppliers and is used to determine the natural content of the raw materials used in our recipes. Due to product differences, the non-fossil proportion of raw materials used for the tesa Business Segment is determined using a different method.

The application of the cascade principle to the reported key figure "Total raw material consumption of biological origin, sustainably certified" is not meaningful, as palm oil cannot be materially recycled or used multiple times after being used in cosmetic products.

TESA

The data on resource inflows and outflows are derived from direct measurements conducted by us on the basis of quantities purchased and consumed. The classification of bio-based and secondary materials is carried out by experts. Any gaps in data were filled using estimates extrapolated from sales figures. It is not yet possible to determine the recyclability of packaging for the tesa Business Segment. Due to the different applications and markets of the products in the tesa business segment, no economic or technical criteria of cascade utilization are applied.

EU Taxonomy Reporting

Since the EU Taxonomy Regulation came into force, Beiersdorf has been required to provide information on sales, capital expenditures (CapEx), and operating expenses (OpEx) associated with environmentally sustainable economic activities. The EU Taxonomy Regulation contains criteria for determining whether an economic activity qualifies as sustainable with respect to various environmental objectives. The overarching goal is to create a more sustainable financial sector and channel investments into green and sustainable projects, thereby contributing to the European Green Deal.

Taxonomy Impact Analysis procedure ${ }^{8}$

Beiersdorf uses a top-down approach to determine the Taxonomy eligibility of certain business activities with the help of the relevant specialist units. To this end, we have assembled an interdisciplinary team consisting of employees from the tesa and Consumer Sustainability departments, Group Accounting and Consolidation (Consumer), and Sustainability Controlling (tesa). The team continuously analyzes - in close cooperation with the specialist units - whether any Taxonomy-eligible economic activities are being performed.

Taxonomy-eligible activities relevant to Beiersdorf are identified based on the activity descriptions, the referenced NACE codes, and the supplementary publications of the EU Commission and the EU Platform on Sustainable Finance.

Identified Taxonomy-Eligible Economic Activities

Beiersdorf's business model was comprehensively analyzed in connection with the implementation of the EU Taxonomy requirements. The core business activities of Beiersdorf are not covered by the activities listed in the latest version of the Delegated Acts. Only one activity in the tesa Business Segment, which relates to the manufacture of subcomponents for batteries (Activity 3.4), was identified as Taxonomy-eligible. However, this activity is of minor importance compared to Beiersdorf's core business activities and only makes up a small proportion of the Group's sales.

In terms of classifying investments and operating expenses, the EU Taxonomy Regulation distinguishes between the following three categories:

• Category A: investments or operating expenses related to assets or processes that are associated with Taxonomy-aligned economic activities.
• Category B: investments or operating expenses that are part of a (CapEx) plan to expand Taxonomy-aligned economic activities or to allow Taxonomy-eligible economic activities to become Taxonomy-aligned.
• Category C: investments or operating expenses related to the purchase of output from Taxonomyaligned economic activities and individual measures enabling the target activities to become lowcarbon or to lead to greenhouse gas reductions.

Due to Beiersdorf's business model, no investments or operating expenses other than those related to economic activity 3.4 are allocated to category A. Similarly, as we are not drawing up any investment plans to convert our activities into Taxonomy-aligned economic activities, none of our investments or operating expenses are allocated to category B. Beiersdorf therefore only has to take into account investments and operating expenses relating to the purchase of output from Taxonomy-aligned economic activities and individual measures (category C).

The reported economic activities relate exclusively to the environmental objective of "climate change mitigation," as they can make a positive contribution to the reduction of $\mathrm{CO}_{2}$ e emissions in the Group and are in line with Beiersdorf's sustainability strategy. In this context, Taxonomy-eligible economic activities are assessed based on the technical screening criteria ("substantial contribution" and "do no significant harm"), i.e., in accordance with Annex 1 to the Commission Delegated Regulation (EU) 2021/2139. Economic activities contributing to the environmental objective "climate change adaptation" are included exclusively in reports for selected investment projects with a focus on factors in connection with climate change adaptation.

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[^0]: ${ }^{8}$ Given the ongoing, dynamic development of the formulations contained within the EU Taxonomy Regulation, also in consideration of the supplementary publications of the EU Commission and the EU Platform on Sustainable Finance, uncertainties persist regarding the interpretation of its wording and terms. As a result, we may make changes to our Taxonomy Impact Analysis in the future.

In the course of the data collection and reporting process, we make sure that each economic activity is clearly allocated to an EU taxonomy activity. We can thus rule out the possibility of economic activities being allocated twice.

The following economic activities were identified as Taxonomy-eligible:

Information and communication

• Activity 8.1 "Data processing, hosting and related activities" was identified as relevant for Beiersdorf, since the Consumer Business Segment operates a data center and provides these services to tesa. The acquisition of third-party computing power (cloud computing services) is also taken into account in this context.
• Activity 8.2 "Data-driven solutions for GHG emissions reductions" is no longer relevant with effect from the financial year 2024. Expenses in connection with emissions management software tools were reported here in the previous year.

Construction and Real Estate activities

• Combined packages of measures reported in connection with Activity 7.2 "Renovation of existing buildings" include content which is allocated to Activities 7.3, 7.5, and 7.6. The investment project (package of measures) must be in excess of $25 \%$ of the value of the building.
• Activities 7.3 "Installation, maintenance and repair of energy efficiency equipment," 7.5 "Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings," and 7.6 "Installation, maintenance and repair of renewable energy technologies" are part of our building management; they also include the installation, maintenance, and repair of heating, ventilation, and cooling systems, photovoltaic systems as well as measuring systems and energy-efficiency control units in our administrative buildings and production facilities.
• Activity 7.4 "Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)" was identified as relevant, as there are vehicle-charging stations on our premises that are operated by a third party.
• Activity 7.7 "Acquisition and ownership of buildings" covers investment activities in connection with the construction or expansion of our production and administrative buildings. The construction of these buildings are carried out by external construction companies. Capitalization of right-of-use assets from leases (IFRS 16) for rented office buildings is also reported under Activity 7.7 .

Energy

• Activity 4.25 "Production of heat/cool using waste heat" was identified in this area, because Beiersdorf uses waste heat for internal heating processes. Activity 4.30 "High-efficiency cogeneration of heat/cool and power from fossil gaseous fuels" is no longer relevant due to the sustainability strategy pursued by Beiersdorf from the financial year 2024. Other activities from this area, e.g., with respect to the production of renewable energy, have been recorded under "Construction and Real Estate" in accordance with the EU Taxonomy Regulation.

Transport

• Our transportation activities are generally outsourced to service providers, meaning we do not conduct any Taxonomy-eligible activities in this area. Our own fleet of company cars falls under Activity 6.5 "Transport by motorbikes, passenger cars and light commercial vehicles."

Manufacturing industry/goods manufacturing

• The manufacture and sale of products from the Consumer Business Segment do not fall within the scope of the EU Taxonomy. With the manufacture of subcomponents for batteries (Activity 3.4, "Manufacture of batteries"), only a small proportion of the tesa Business Segment's economic activity qualifies as Taxonomy-eligible. Its other activities do not generate Taxonomy-eligible sales. For example, tesa does not manufacture plastics in primary form, but sources them from suppliers.

The data basis for determining the key figures (sales, capital expenditure, and operating expenses) for Taxonomy-eligible and Taxonomy-aligned economic activities (numerator) and their corresponding reference figures (denominator) is generally derived from Beiersdorf's financial controlling systems.

Taxonomy-Eligible Sales

The denominator for the purposes of the EU Taxonomy is determined in line with the definition of sales in the consolidated financial statements (see Notes to the consolidated financial statements, Income Statement, Note 01).

For the 2024 reporting year, sales relating to the manufacture of subcomponents for batteries are reported under Activity 3.4 "Manufacture of batteries." The sales generated in this area are attributable entirely to the tesa Business Segment. These transactions amount to $€ 17$ million and therefore represent $0.2 \%$ of our Group sales of $€ 9,850$ million.

Taxonomy-Eligible Capital Expenditure (CapEx)

The reference figure (denominator) of our Taxonomy-eligible activities is determined in accordance with the requirements of the EU Taxonomy Regulation. For the 2024 reporting year, the reference figure is $€ 509$ million (denominator). In addition to the investments in intangible assets (Note 11 to the consolidated financial statements) and property, plant, and equipment (Note 12 to the consolidated financial statements) reported in the annual report, this figure also includes investments related to right-of-use assets from leases (Note 12 to the consolidated financial statements).

Capital expenditure for projects and long-term leases is allocated to the activities identified as Taxonomy-eligible with the help of Beiersdorf's financial controlling systems and interviews with the responsible specialist units. For the 2024 reporting year, capital expenditure amounting to $€ 111$ million - a share of $21.9 \%$ - is attributable to Activity 7.7 "Acquisition and ownership of buildings."

In total, our Taxonomy-eligible capital expenditure amounts to $€ 156$ million. This corresponds to a share of $30.7 \%$ of the total capital expenditure (denominator) of $€ 509$ million for the 2024 reporting year. The change compared to the previous year is primarily attributable to the conclusion of projects in connection with the modernization and expansion of our (production) sites and the associated capital expenditure in 2023 (Activity 7.7).

Taxonomy-Eligible Operating Expenses (OpEx)

The data basis for calculating the reference figure (denominator) for Taxonomy-eligible operating expenses for the 2024 reporting year is derived from Beiersdorf's financial controlling systems. The reference figure is the sum of the following cost components:

• Research and development expenses
• Expenses in connection with short-term and low-value leases
• Maintenance and repair expenses

Where possible, operating expenses were allocated directly to the identified Taxonomy-eligible activities using data from our financial systems. In cases where it was not possible to directly allocate

percentage shares, these shares were broken down and, if necessary, allocated using appropriate keys (e.g., capital expenditure for Taxonomy-eligible activities).

Taxonomy-eligible operating expenses amounted to $€ 35$ million. Compared with the investment expenditure reference figure of $€ 524$ million, this is equivalent to a share of $6.7 \%$. The change compared to the previous year is primarily attributed to operating expenditures, which are reported for the first time in connection with activity $7.3,7.7$ and 8.1 for the financial year 2024.

Approach and Results of the Alignment Analysis

To assess whether the Taxonomy-eligible activities relevant to Beiersdorf are Taxonomy-aligned, we conducted a comprehensive analysis of the relevant technical screening criteria as set out in the annexes to the Delegated Acts on the EU Taxonomy. For a Taxonomy-eligible activity to be classified as Taxonomy-aligned, the following requirements must be satisfied cumulatively:

• Compliance with the technical screening criteria for a substantial contribution to the respective environmental objective
• Compliance with the technical screening criteria to avoid material adverse effects on other environmental objectives (do no significant harm, DNSH)
• Compliance with minimum safeguards

In principle, compliance with the technical screening criteria is checked and documented individually for each activity. DNSH compliance regarding Appendix A ("Climate change adaptation") is verified centrally for the relevant Taxonomy-eligible activities with the help of climate risk and vulnerability analyses for each site.

Beiersdorf relies on processes, documents, and guidelines that are established within the Group to review and comply with the minimum protection requirements (see sections ESRS S2 - Workers in the Value Chain and ESRS G1 - Business Conduct). Beiersdorf actively promotes compliance with laws, codes of conduct, and human rights. Our annual risk management process includes an assessment of human rights violations by our employees and in our supply chain. Beiersdorf advocates for fair competition and actively prevents corruption through a number of compliance programs. Through appropriate monitoring measures, Beiersdorf ensures that the minimum protection requirements of the EU Taxonomy are met. Beiersdorf has a compliance management system for taxes similar to the Groupwide compliance management system. Based on our analyses, we have identified a Taxonomy-aligned share for the following activities:

• Activity 6.5 "Transport by motorbikes, passenger cars and light commercial vehicles"
• Activity 7.4 "Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)"
• Activity 7.5 "Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings"
• Activity 7.6 "Installation, maintenance and repair of renewable energy technologies"
• Activity 7.7 "Acquisition and ownership of buildings"

The remaining activities identified as Taxonomy-eligible are not Taxonomy-aligned.
The tables below show the amount of Taxonomy-aligned CapEx and OpEx clustered by component:

CapEx Distribution of Taxonomy-Aligned Activities

Economic activities	Code	Intangible assets	Property, plant and equipment	Financial assets	Total
Transport by motorbikes, passenger cars and light commercial vehicles	CCM 6.5	0	359	0	359
Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)	CCM 7.4	0	365	0	365
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings	CCM 7.5	0	93	0	93
Installation, maintenance and repair of renewable energy technologies	CCM 7.6	0	12,780	0	12,780
Acquisition and ownership of buildings	CCM 7.7	0	11,811	0	11,811
Taxonomy-aligned activities		0	25,408	0	25,408

OpEx Distribution of Taxonomy-Aligned Activities

Economic activities	Code	Research and development expenses	Lease expenses	Repair and maintenance expenses	Total
Transport by motorbikes, passenger cars and light commercial vehicles	CCM 6.5	0	105	27	132
Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)	CCM 7.4	0	0	56	56
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings	CCM 7.5	0	0	341	341
Installation, maintenance and repair of renewable energy technologies	CCM 7.6	0	0	648	648
Acquisition and ownership of buildings	CCM 7.7	0	0	1,218	1,218
Taxonomy-aligned activities		0	105	2,290	2,395

To check our compliance with the technical screening criteria in connection with Activity 7.7 "Acquisition and ownership of buildings," we primarily relied on the available energy performance certificates (EPCs) and the primary energy demand listed therein. In the event that no energy performance certificate was available, we used alternative external confirmations that provide appropriate evidence of compliance with the limits specified in the technical screening criteria (e.g., energy class A).

The majority of Beiersdorf's Taxonomy-eligible activities involve products and services obtained from suppliers and service providers. Where possible, the relevant technical assessment criteria are primarily checked directly by Beiersdorf or by confirmation from our suppliers. In some cases, there were no third-party evidence and confirmations available for these economic activities to conclusively assess their potential Taxonomy-alignment. For other economic activities, the technical screening criteria could not be fully met, resulting in no Taxonomy-aligned disclosure for this portion. This particularly applies to portions of investment expenses for activities 6.5, 7.7 and 8.1.

The 2024 reporting year posed further considerable challenges for both Beiersdorf and its suppliers in terms of proving the Taxonomy-alignment of the identified Taxonomy-eligible activities.

Proportion of Turnover/Total Turnover

	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	$0 \%$	$0.2 \%$
CCA	$0 \%$	$0 \%$
WTR	$0 \%$	$0 \%$
CE	$0 \%$	$0 \%$
PPC	$0 \%$	$0 \%$
BIO	$0 \%$	$0 \%$

Proportion of CapEx/Total CapEx

	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	$5.0 \%$	$25.7 \%$
CCA	$0 \%$	$0 \%$
WTR	$0 \%$	$0 \%$
CE	$0 \%$	$0 \%$
PPC	$0 \%$	$0 \%$
BIO	$0 \%$	$0 \%$

Proportion of OpEx/Total OpEx

	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	$0.5 \%$	$6.3 \%$
CCA	$0 \%$	$0 \%$
WTR	$0 \%$	$0 \%$
CE	$0 \%$	$0 \%$
PPC	$0 \%$	$0 \%$
BIO	$0 \%$	$0 \%$

Nuclear and Fossil Gas Related Activities

Nuclear energy related activities
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	No
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	No
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	No
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	No
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/ cool and power generation facilities using fossil gaseous fuels.	No
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	No

Social Information

ESRS S1 - Own Workforce

Material Impacts, Risks, and Opportunities

As part of our materiality assessment, we identified positive impacts in relation to the issues of working conditions (including collective bargaining, freedom of association, social dialog, working time, and work-life balance) and of equal treatment and opportunities for all (including diversity, gender equality and equal pay for work of equal value, and training and skills development). Potential negative impacts were identified in relation to occupational health and safety. No risks or opportunities were identified in relation to the company's own workforce. The material impacts relate to our own employees and not to self-employed workers or employees of third-party companies. A description of the activities of the company resulting in positive impacts is provided in the following chapter (see "Actions"). With regard to negative impacts in the area of occupational safety, employees working in production facilities are considered to be particularly at risk.

A detailed overview of all impacts, risks and opportunities identified and the methodology used for the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

Policies Related to the Own Workforce

Beiersdorf has introduced various policies to reinforce material positive impacts and minimize any negative impacts in relation to the company's own workforce.

Consumer

We firmly believe that our employees are the key to the success of our company. Their commitment and expertise are a major reason why our brands and products are appreciated and purchased all over the world. As an employer, we offer our employees attractive conditions and a wide range of opportunities to grow personally and help shape the future of the company. In doing so, we create an important basis for successfully competing for talent.

Our culture is based on trust, collaboration, respect, openness, and mutual appreciation - and, in addition to our Core Values of Care, Simplicity, Courage, and Trust, focuses in particular on a sense of community.

Code of Conduct (CoC) for employees
Our company operates worldwide - and laws, codes of conduct and customs are as diverse as the languages spoken by Beiersdorf employees. This is why we set high standards when it comes to responsibility, both for us as a company and for each individual. Our Code of Conduct for the Consumer Business Segment is designed to set out these binding standards and provide guidelines that anyone can apply in any location where the Consumer Business Segment is represented by affiliates. It is intended to help employees, managers and members of the Executive Board alike to understand our principles, act in accordance with them and preserve them for the future. The Code of Conduct addresses material topics such as diversity and occupational health and safety, among others and stipulates that any form of discrimination or harassment is expressly rejected in all areas of the company and in all decisions. This applies regardless of skin color, gender, age, religion, ideology, sexual orientation and gender identity, disability, cultural, ethnic or national origin. A detailed description of the Code of Conduct and its content as well as the relevant monitoring processes can be found in the chapter "ESRS G1 - Business Conduct."

Declaration of Principles on Upholding Human Rights

With our "Declaration of Principles on Upholding Human Rights," we are making an express commitment to strengthening human rights: We do not tolerate any form of corruption, forced labor, human trafficking, child labor, or discrimination. This applies both to our own sites and employees worldwide and to all workers in the value chain. Furthermore, we support the health and safety of employees in the workplace, employees' right to freedom of association, including collective bargaining, and environmental protection. We are also committed to equal rights and treatment and to diversity. The "Declaration of Principles on Upholding Human Rights" therefore addresses the material topics of freedom of association/collective bargaining, health and safety and diversity.

A detailed description of the "Declaration of Principles on Upholding Human Rights" can be found in the chapter "ESRS S2 - Workers in the Value Chain."

Diversity, Equity \& Inclusion Roadmap (DE\&I Roadmap)
As a global company, we see diversity in our workforce as an opportunity. The aim of our DE\&I Roadmap is to create an inclusive corporate culture whose diversity reflects the diversity of our customers while also taking gender balance into account. Our roadmap sets out three strategic priorities to achieve this objective:

1. Embedding a truly inclusive culture of "We" rather than "I."
2. Driving diversity in leadership positions (with a focus on gender parity).
3. Achieving diversity in our teams beyond the focus on gender (#beyondgender).

The "DE\&I Roadmap" applies to all employees worldwide of the Consumer Business Segment. Nicola D. Lafrentz, Member of the Executive Board, CHRO and Labor Relations Director for Germany, is responsible for implementing the "DE\&I Roadmap."

The roadmap is available on our intranet and accessible to all employees.

The DE\&I Roadmap addresses the ESRS sub-topics of diversity and gender equality, which have been identified as material.

Safety and Health Policy

The aim of our "Safety and Health Policy" is to reduce potential safety risks and accidents in our production facilities. The policy includes our most important actions and programs, and can be used by our sites as a basis for developing their own local implementation plans and actions. These include, among other things:

• Safety and health management systems: Implementation and continuous improvement of systems to identify, assess and control risks.
• Emergency preparedness and response: Development and regular review of emergency plans and implementation of appropriate trainings.
• Health management: Promotion of the physical and mental health of employees through preventive measures and health offerings.
• General safety aspects: Implementation of measures to ensure a safe working environment, including the provision of personal protective equipment and the safe handling of machinery and equipment.

Our global and local safety departments, together with our leadership teams, are responsible for implementing the policy and for our overall safety management in the workplace. Senior managers are responsible for implementing safety and health management systems relevant to their sites. Our "Safety and Health Policy" applies particularly to all our production sites around the world.

To monitor the progress of our safety measures, we use global indicators and carry out regular audits. These audits are carried out both by external partners and internally to ensure compliance with the policies and identify potential for improvement. The "Safety and Health Policy" is available on our intranet and accessible to all employees.

Global policy on serious illnesses

Trust and care are firmly anchored in the Consumer Business Segment's value system. In cases of lifethreatening illnesses, we support our employees from their diagnosis through to their reintegration into the workplace. The policy applies globally to all employees of the companies in the Consumer business unit and becomes effective through national agreements accordingly. Nicola D. Lafrentz, CHRO and Labor Director in Germany, is responsible for the guideline. We offer medical and social support for those affected and attach great importance to educating and informing managers.

There are currently no global policies on the material topics of social dialog, training and skills development, equal pay for work of equal value, work-life balance and working time, as these labor law agreements are made at national level in accordance with national legislation and occupational health and safety laws.

EBSA

Our employees make a crucial contribution to our company's success. Their commitment and skills enhance our innovative strength and competitiveness. We support talented employees with targeted training measures and offer them an attractive working environment that values individual strengths and diversity. Our aim is to attract motivated employees, retain them in the long term and ensure sustainable success. Our values - Team up, Challenge Yourself, Set the Pace, Focus on your Customers, Act responsibly, Achieve and Improve - shape our daily actions and our corporate culture.

tesa Code of Conduct

It is our goal to ensure that the ethical principles driving our success are standardized and implemented for all tesa employees worldwide. This is why tesa has introduced the tesa Code of Conduct, which is based on our corporate values and the principles of the UN Global Compact. The tesa Code of Conduct

contains important rules for acting responsibly and offers all employees guidance on legal and ethical challenges. The tesa Code of Conduct clearly states that any form of forced labor is strictly rejected. Child labor is also not tolerated and no young people under the respective legal minimum age may be employed. tesa is committed to equal treatment and expressly opposes any kind of discrimination in all areas of the company and in all decisions.

No one may be discriminated against, i.e. disadvantaged without objective reasons, because of their race, skin color, nationality or descent, because of their gender, their beliefs, their worldview or political opinion, because of their physical constitution, sexual orientation, their age, appearance or because of other personal characteristics. The main topics of the tesa Code of Conduct include business conduct, personal integrity, the handling of company resources, the working environment, sustainability and compliance with the principles. The material topics of diversity, occupational health and safety, and social dialog are also addressed in this context. A detailed description of the tesa Code of Conduct and its content can be found in the chapter "ESRS G1 - Business Conduct."

Declaration of Principles on Upholding Human Rights

Our "Declaration of Principles on Upholding Human Rights" is our statement of commitment to the principles of the "United Nations Global Compact" (UNGC) and other relevant guiding principles such as the "United Nations Universal Declaration of Human Rights," the conventions of the "International Labour Organization" (ILO) and the "OECD Guidelines for Multinational Enterprises." We also observe country-specific regulations and official requirements. As a responsible company, tesa rejects any form of human rights violations and punishes any violations immediately. The tesa Executive Board is responsible for the implementation of and compliance with human rights.

The "Declaration of Principles on Upholding on Human Rights" addresses the material topics of freedom of association/collective bargaining, occupational health and safety, working conditions and especially working time, as well as equal pay for work of equal value.

A detailed description of the "Declaration of Principles on Upholding Human Rights" can be found in chapter "ESRS 52 - Workers in the Value Chain."

HR Compliance Guideline

The "HR Compliance Guideline" provides a thorough overview of the main requirements placed on the HR department, employees and managers and forms the framework for ensuring that our company acts in accordance with ethical, legal and social standards. It is in line with the company's Code of Conduct, which sets out the basic principles for our behavior and actions. By consistently implementing this Guideline and the Code of Conduct, tesa ensures that the highest standards of integrity and professionalism are maintained.

The guideline covers key areas such as anti-discrimination and harassment, labor law, recruitment, remuneration, and the handling of personal data. It also defines the procedures for reporting and penalizing violations of these standards. A key component is ongoing monitoring and risk assessment to ensure adherence to compliance requirements. The effectiveness and implementation of the Guideline is continuously reviewed by means of ongoing monitoring by the local and regional HR departments. Risk assessments are additionally carried out every three years by the headquarter in the regions in order to identify potential violations. Finally, the responsibilities within tesa are clearly defined in the "HR Compliance Guideline," and it also addresses the material topics of training and skills development, equal pay for work of equal value and gender equality. The "HR Compliance Guideline" is accessible to all employees via our intranet.

tesa Policy on Occupational Safety and Health
At tesa, the management of occupational safety and health is a firmly established part of our corporate culture. Our internal management system is based on legal requirements and is largely based on our "tesa Policy on Occupational Safety and Health," which was adopted in 2022.

The "tesa Policy on Occupational Safety and Health" covers six key areas:

• Crisis management
• Health care
• Risk assessment
• Accident prevention
• Fire and explosion prevention
• Facility safety

It forms the basis of our occupational safety measures, is supplemented by site-specific regulations and is accessible to all employees via our intranet. The policy addresses the material topic of health and safety and ensures that everyone is informed about their responsibilities in the workplace.

Continuous training and briefings for our employees are important components of our occupational safety program. By providing regular instruction, we raise awareness of potential hazards and enable our employees to avoid accidents and protect their health by acting responsibly. In order to continuously improve the effectiveness of our occupational safety management, we conduct an annual management review. This involves analyzing incidents together with the Occupational Safety department and introducing appropriate actions to improve safety and health protection.

In the course of our reporting, we found that we currently do not have global policies in place on certain topics, specifically on work-life balance. We are actively working to eliminate these gaps as part of a "Global Social Sustainability" program so that we can ensure comprehensive reporting in the future. tesa does, however, ensure that national laws are complied with, including with regard to work-life balance. However, there is currently no specific global policy that explicitly addresses this issue.

Processes for Enganging with own Workforce and Workers' Representatives

Consumer

Participation and involvement, along with transparency and engaging in a dialog as equals, are key success factors for a "we culture." We involve all employees regarding the material positive and negative impacts through a variety of different formats. In the 2024 reporting year, these included two global town hall meetings that were broadcast worldwide, various functional and local town hall meetings and a total of four works meetings for Beiersdorf AG Hamburg (Consumer Business Segment). These events offer our employees the opportunity to contribute their views through open question and answer sessions. We use e-mails from our Executive Committee and our intranet to keep all employees - at global and local level - worldwide informed and involved. This dialog is designed to strengthen our "we culture" and also reflects our Core Value of Care.

Another important element of our corporate culture is the involvement of workers' representatives. This allows us to incorporate the views of our workforce into our decision-making processes and activities as part of constructive and trust-based cooperation and to make and implement decisions on actual or potential impacts together. This applies equally across Europe, where another of our aims is to ensure compliance with all European requirements in the area of labor law and occupational safety in the various European legislative frameworks.

The perspectives of our own workforce are also reflected through the workers' representatives on Beiersdorf AG's Supervisory Board. The Supervisory Board of Beiersdorf AG consists of twelve members, all of whom are elected for a term of five years. Six are elected by the Annual General Meeting (in accordance with the German Stock Corporation Act - AktG) and six are elected by the company's employees (in accordance with the German Codetermination Act, MitbestG). The task of the Supervisory Board is to advise the Executive Board on the management of the company and to monitor its activities in accordance with the law, the Articles of Association and the rules of procedure. Its members are involved in decisions that are of fundamental importance to the company and it works closely with the Executive Board in the company's best interests.

In addition to our multifaceted cooperation with workers' representatives, we attach great importance to receiving individual feedback from each and every employee. In the fourth quarter of the reporting year, we conducted our annual "teampulse" engagement survey worldwide for the fourth time. This survey is aimed at all permanent employees as well as temporary employees who have been with the company for more than six months. To ensure the results could be compared with the previous years, we used the same core questions but made some new additions to address current topics such as decision making and communication. As in previous years, our employees were interested in sharing their feedback. One of the questions we ask as part of this survey is how far participants believe the results will lead to concrete action by the company. This question gives the company an implicit impression of whether the workforce feels represented in the company's decisions and how the effectiveness of our cooperation with the workforce should be assessed.

To gain the perspectives of people in the workforce who may be particularly vulnerable to negative impacts on their wellbeing and/or to being marginalized, we have also included questions on diversity and inclusion in this engagement survey and provided free text fields so that they have the option to leave comments. We continuously invite employees to express their opinions on the intranet via our "Speak Up. We Care." whistleblowing system.

Operational responsibility for incorporating the perspectives of our own workforce lies with Nicola D. Lafrentz, Member of the Executive Board, CHRO and Labor Relations Director for Germany. As part of our People Strategy, Nicola ensures that the views of employees are taken into account in company decisions.

tesa

tesa's strong corporate culture is based on co-determination, openness and dialog on an equal footing. A crucial element of this is the active participation of our employees, which is ensured through the work of the works council. The works council plays an essential role in representing the interests of employees and enabling them to exert a direct influence on key business decisions. This is how we ensure that the voices and concerns of our workforce are firmly incorporated into our decision-making processes. Operational responsibility for involving our own workforce and ensuring that these results are incorporated into our policies lies with the chairs of the respective workers' representation bodies.

We also promote a continuous exchange of information and ideas with all employees through global and local town hall events and regular works meetings. Three global town hall meetings and two works meetings have been held in 2024. The intranet and emails are also used to keep our employees around the world continuously informed. This dialog strengthens our sense of community and reflects our "Team-Up" People Value.

The perspectives of our own workforce are also reflected through the workers' representative bodies on the tesa Supervisory Board. The Supervisory Board of tesa SE consists of five members who are elected at the Annual General Meeting by all shareholders present and represented for a period of five years. The Chair of the Supervisory Board is appointed by the members of the Supervisory Board. The task of

our Supervisory Board is to advise the Executive Board on the management of the company and to monitor its activities in accordance with the law, the Articles of Association and the rules of procedure. Its members are involved in decisions that are of fundamental importance to the company and it works closely with the Executive Board in the company's best interests. Two of the five members of the Supervisory Board represent the employees.

At a global level, we attach great importance to creating a safe and non-discriminatory working environment for all employees. We are committed to consistent compliance with the provisions of labor law and occupational health and safety legislation. Within the EU, our workforce is represented by the European Works Council (EWC). In Germany, this covers the following affiliates: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH and tesa Manufacturing GmbH. The EWC also represents employees from various European countries, including: France, Italy (including the Comet SpA plant), the Netherlands, the United Kingdom, Austria, Switzerland, Finland, Norway, Sweden, Belgium, Spain, Portugal, Czechia, Slovakia, Poland, Lithuania, Estonia, Latvia, Hungary, Romania, Greece, Croatia, Slovenia and Bulgaria. In addition, there is a Group Works Council (GWC) in Germany, to which each company sends two delegates from the respective local works council. Our GWC is composed of the following companies: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH and tesa Manufacturing GmbH. In addition, each of the above companies also sends two delegates to the Group Works Council of Beiersdorf AG.

David Paz, Head of HR and member of the Global Executive Committee (GEC), has operational responsibility for incorporating the perspectives of our workforce into company decisions. As part of the HR roadmap, which is valid until the end of 2025, he ensures that the perspectives of employees are incorporated into the strategic direction of tesa. The exchange with employee representatives and management supports balanced and sustainable decision-making.

There is currently no global framework agreement with the workers' representatives on upholding the human rights of our workforce, as the tesa Code of Conduct and the "Declaration of Principles on Upholding Human Rights" are already binding policies for all managers and employees and ensure compliance with human rights.

Channels Through Which the Company's Workforce Can Raise Concerns

Both business segments have established whistleblowing and reporting systems. The Consumer Business Segment has the "Speak up. We care." platform, while the tesa Business Segment uses a whistleblower platform called "Your voice - Our bond." These can be used to record any breaches of conduct that are unlawful or in conflict with internal company policies, anonymously if preferred.

A detailed description of the whistleblowing system can be found in the chapter "ESRS G1 - Business Conduct."

Actions Related to the Company's Own Workforce

Actions in Relation to Working Conditions

Consumer

We know how important a healthy work-life balance and flexible working models are for the satisfaction and productivity of our employees. This is why we offer our employees the opportunity to choose between flexible working time models to suit their stage of life and individual needs.

Our flexible working time model with flexitime and options for working from home helps our employees to achieve an optimal balance between work and family life. We promote family-friendly working practices and attach particular importance to compliance with parental leave regulations and

a smooth return to work. There is also a parent/child office at the Beiersdorf AG headquarters, which offers parents a flexible environment.

On top of this, we offer additional services such as a cleaning service, a restaurant and various mobility options to make everyday working life more convenient and healthy. Our aim is to create a working environment that takes both professional and personal needs into account and promotes satisfaction and productivity.

The regulations for flexible working time models and flexitime are agreed at the level of the national affiliates and are not currently subject to any global policy. Worldwide, we offered flexible working time in $86 \%$ of our affiliates, part-time working in $66 \%$ of our companies and the option of sabbatical leave in $49 \%$ of our affiliates at the end of the reporting year. We plan to standardize these regulations globally over the next ten years.

All measures described below contribute to achieving the goals and ambitions set out in our policies. The following actions were implemented in the 2024 reporting year:

Working time regulation
Description: The working time regulation at Beiersdorf AG and Beiersdorf Shared Services GmbH is based on flexibility and trust. Employees can organize their working time flexibly within a certain framework and have the opportunity to freely choose their place of work, e.g. mobile or hybrid working by arrangement, if their tasks allow this. Employees are responsible for recording their own working time.

To promote cooperation, teams can specify service times during which their availability is guaranteed. Time off in lieu (flexitime) is possible by arrangement and can also be combined with vacation. The statutory regulations apply, with employees permitted to work a maximum of ten hours a day in exceptional cases. This regulation on flexible working is governed for Beiersdorf AG and Beiersdorf Shared Services GmbH by works agreements which include topics like flexible working time and parttime working. In addition, the topic of trust-based working hours for our non-tariff employees in management group 4 of Beiersdorf AG is also described in a works agreement.

Scope: Beiersdorf AG, Beiersdorf Shared Services GmbH
Time horizon: Ongoing
Expected outcome: Regulation on flexible working time so that our employees can better reconcile professional and private needs and therefore work more productively.

Material topics addressed: Working time, work-life balance

Working time/flexible work location
Description: We offer our employees from Beiersdorf AG and Beiersdorf Shared Services GmbH the opportunity to work one or two days a week from a different location (but in the same country).

Scope: Beiersdorf AG, Beiersdorf Shared Services GmbH
Time horizon: Ongoing
Expected outcome: The action is intended to help employees achieve a better work-life balance and work more productively as a result.

Material topics addressed: Work-life balance

Job sharing
Description: In addition to part-time working and other flexible working arrangements, we offer a job sharing model where two employees take on the same position together as a job tandem. This job sharing model has been standard practice at our company for several years and also applies at the top management level (known as "top sharing") or, via the "joint leadership" model, up to the middle management level. We also support the "senior meets junior" model, where employees from two generations share a job and learn from each other. This provides them the option for part-time study or a transition to partial retirement.

At the end of the reporting year, we had a total of 45 job-sharing tandems (previous year: 38). 27 tandems (previous year: 21) have personnel responsibility - part-time or full-time. Eight tandems are made up of people of different genders. Two tandems also work across borders - meaning the job sharing partners work in different countries. Our job sharing tandems are an example of balanced and diverse collaboration.

Scope: All German locations of Beiersdorf AG and currently 30\% of global locations of Beiersdorf AG. We aim to further increase the proportion of participating subsidiaries over the next five years.

Time horizon: Ongoing
Expected outcome: The action should help employees manage different jobs even if they are working fewer hours. We also see this as an important tool for strategic HR work and development.

Material topics addressed: Working time, work-life balance

Parental leavers programs

Description: In cooperation with the "MyCollective" start-up, we offer two global "Parental Leavers" programs. One is aimed specifically at managers entering parental leave, while the other is open to all employees currently on parental leave. Both programs are based on an online platform that enables employees on parental leave to stay connected during this phase if they wish, build a network, and take advantage of various training opportunities. The focus here is on providing the right tools to support their return to work in the best possible way.

Scope: All global locations of Beiersdorf AG
Time horizon: Ongoing
Expected outcome: The action is intended to make it easier for employees to return to work after parental leave.

Material topics addressed: Work-life balance
Company kindergarten "TroploKids"
Description: In addition to the many flexible working arrangements on offer, we offer childcare facilities for the children of our employees in Hamburg through our company kindergarten "TroploKids." In addition, places are also given to children from the neighborhood, which supports our Care strategy.

Scope: All Hamburg locations of Beiersdorf AG
Time horizon: Ongoing

Expected outcome: Our aim with this action is to offer employees in Hamburg childcare options for their children and at the same time strengthen our social responsibility by opening up to the neighborhood.

Material topics addressed: Work-life balance

Beiersdorf health management

Description: The aim of the Beiersdorf health management is to sustainably promote the health and well-being of all employees. The program relies on preventive measures to reduce stress, strengthen individual resources and create a healthy working environment in the long term. Offers on ergonomic workplace design, exercise and nutrition, regular check-ups, social counseling and psychological counseling are intended to support employees in their physical and mental health. All company health management offers can be viewed via intranet.

Scope: All Hamburg locations of Beiersdorf AG
Time horizon: Ongoing
Expected outcome: Greater resilience among employees and long-term health promotion.
Material topics addressed: Health and safety
Freedom of association \& collective agreement coverage
Description: Beiersdorf is a member of the collective bargaining association for the chemical industry, which means the provisions of the collective agreement are binding for all employees employed under collective agreements, provided that their employment contracts refer to the collective agreement or parts of it. The salary concerns of non-tariff employees in management groups 4-5 are collectively regulated under labor law in company agreements in the respective German Beiersdorf companies. In order to take current requirements into account, the employment contract templates at Beiersdorf are regularly revised.

Scope: All German Beiersdorf AG sites
Time horizon: Ongoing
Expected outcome: Beiersdorf offers a transparent and reliable structure for working and remuneration conditions.

Material topics addressed: Collective bargaining
Social dialog in the German affiliates
Description: Social dialog at national level is regulated by a voluntary works agreement. The works agreement contains regulations on the creation of a joint body consisting of company management representatives and workers' representatives from the respective nationally elected workers' representative bodies or recognized workers' representative bodies. Regular meetings are held to exchange information between the workers' representatives, the Labor Relations Director and other management representatives.

Scope: All German Beiersdorf AG sites
Time horizon: Ongoing

Expected outcome: Promotion of dialog between representatives of the employer and the workforce on social policy issues as well as joint agreements reached.

Material topics addressed: Social dialog
Social dialogue in the European area
Description: Within the scope of the European Union, our employees are represented by the European Works Council. Social dialog at European level is regulated by a voluntary works agreement. The works agreement contains regulations on the creation of a joint body consisting of company management representatives and workers' representatives from the respective nationally elected workers' representative bodies or recognized workers' representative bodies. Regular meetings are held to exchange information between the workers' representatives, the Labor Relations Director and other management representatives.

Scope: All Beiersdorf AG locations in the member states of the European Union and the signatory states to the Agreement on the European Economic Area

Time horizon: Ongoing
Expected outcome: Promotion of dialog between representatives of the employer and the workforce on social policy issues as well as joint agreements reached.

Material topics addressed: Social dialog
Further development of our safety management system
Description: In the Consumer Business Segment, we developed a new internal auditing program that was piloted at two production sites. In addition, we have defined "Life Saving Rules" to create a safe working environment and educate our employees about the topic of safety. These rules will be rolled out at the various locations.

Scope: All global production sites and self-operated logistics sites
Time horizon: 2024-2025
Expected outcome: Increased safety awareness of the potentially high safety risks and thus a reduction in serious incidents and injuries in the work environment.

Material topics addressed: Health and safety
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Our flexible working time model with flexitime and options for working from home helps our employees to achieve an optimal balance between work and family life. We promote family-friendly working practices and attach particular importance to compliance with parental leave regulations and a smooth return to work. There is also a parent/child office at the tesa headquarters, which offers parents a flexible environment.

At tesa SE, we also offer additional services such as a cleaning service, weekly market stalls with regional products, and various mobility options to make everyday working life more convenient and healthy. Our aim is to create a working environment that takes both professional and personal needs into account and promotes satisfaction and productivity.

Working time regulation
Description: The working time regulation at tesa is based on flexibility and trust. Employees can organize their working time flexibly within a certain framework and have the opportunity to freely choose their place of work, e.g. mobile or hybrid working, by arrangement, if their tasks allow this. Employees are responsible for recording their own working time.

To promote cooperation, teams can specify service times during which their availability is guaranteed. Time off in lieu (flexitime) is possible by arrangement and can also be combined with vacation. The statutory regulations apply, with employees permitted to work a maximum of ten hours a day in exceptional cases. This regulation on flexible working only applies to tesa SE and is governed by works agreement BV t-35. In our German production facilities, we enable all non-commercial employees to have flexible working hours. Flexible working is also partly possible in our foreign companies. Since the exact scope is not currently recorded, we are working on a reporting structure to create an overview and take the corresponding figures into account in the next reporting.

Scope: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH, tesa Manufacturing GmbH
Time horizon: Ongoing
Expected outcome: Regulation on flexible working time
Material topics addressed: Working time, work-life balance

Mobile working

Description: tesa enables employees to work remotely through a works agreement that promotes flexibility and personal responsibility and is aimed at transforming the culture. Mobile working is flexible in terms of hours and days and must be coordinated with the team and manager, with priority given to team needs and requirements for on-site attendance. During mobile working, employees must ensure that they are professionally available and adhere to clear team agreements on availability and avoidance of working time restrictions. Statutory accident insurance cover is also available to employees carrying out professional activities as part of mobile working. This regulation on mobile working only applies to tesa SE and is governed by works agreement BV t-35a. In our German production facilities, we enable all non-commercial employees to have flexible working hours. Mobile working is also partially possible in our foreign companies. Since the exact scope is not currently recorded, we are working on a reporting structure to create an overview and take the corresponding figures into account in the next reporting.

Scope: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH, tesa Manufacturing GmbH
Time horizon: Ongoing
Expected outcome: Regulation on enabling and implementing mobile working.
Material topics addressed: Working time, work-life balance, health and safety
Freedom of association \& collective bargaining coverage
Description: tesa is a member of the collective bargaining association for the chemical industry, which means that the provisions of the collective agreement are binding for all pay-scale employees, provided their employment contracts refer to the collective agreement or parts thereof. This regulation applies to both pay-scale and non-pay-scale employees. Non-pay-scale employees in management groups 3-5 are also covered by Group works agreement KBV-t-79. This agreement governs salary management for non-pay-scale employees and ensures that their remuneration is in line with the requirements of the collective agreement.

To take current requirements into account, the employment contract templates at tesa are regularly revised. In addition to the collectively agreed and contractual regulations, a company practice has developed in other areas of working conditions and has become firmly established in the processes and agreements.

Scope: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH, tesa Manufacturing GmbH
Time horizon: Ongoing
Expected outcome: tesa offers a transparent and reliable structure for working and remuneration conditions.

Material topics addressed: Collective bargaining
Social dialog in the German affiliates
Description: At national level, social dialogue is regulated by our Group Works Council, to which each company sends two delegates. The Group Works Council of tesa SE discusses and negotiates Groupwide issues in Germany, primarily general personnel and remuneration regulations.

Scope: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH, tesa Manufacturing GmbH
Time horizon: Ongoing
Expected outcome: Promotion of dialog between representatives of the employer and the workforce on social policy issues as well as joint agreements reached.

Material topics addressed: Social dialog
Social dialogue in the European area
Description: When tesa SE (Societas Europaea) was founded, an agreement was reached under European law to establish a European Works Council (EWC). The EWC represents the interests of employees within the European Union and the European Economic Area. The main task of the EWC is to ensure a regular exchange of information between management and workers' representatives as part of their right to information. In addition, the EWC elects the two workers' representatives for the Supervisory Board of tesa SE from among its members. The election period of the EWC is aligned with the term of office of the Supervisory Board. The members of the EWC are delegated from the works councils of those companies with a works council.

Scope: The agreement applies to tesa SE and its dependent companies in the member states of the European Union and the signatory states to the Agreement on the European Economic Area, the tesa nie wieder bohren GmbH is excluded from this.

Time horizon: Ongoing
Expected outcome: Promotion of dialog between representatives of the employer and the workforce, in particular on the exercise of rights to information and the election of workers' representatives to the Supervisory Board.

Material topics addressed: Social dialog

Harmonization of safety management at tesa

Description: tesa has begun introducing software to improve performance in various safety areas, including reporting, integrated management system and monitoring processes. The software facilitates seamless processes across departments and sites, making overall safety management more efficient. Following a pilot phase at two production sites in 2024, there are plans for full implementation at all sites by 2025. The software makes it easier to record, analyze and standardize safety-related issues. Its introduction will not only help us modernize our technology, but also support the strategic improvement of our safety policies. The aim is to create a safer working environment for all employees.

Scope: tesa global
Time horizon: 2025

Expected outcome: Increased transparency within the organization, improved communication on safety topics, optimized control of the safety management system and reduction in the number of accidents.

Material topics addressed: Health and safety

Local safety initiatives

Description: As part of our continuous improvement process, our production sites and headquarters have developed initiatives to drive forward necessary improvements in various areas.

Scope: All production sites worldwide and headquarters
Time horizon: 2024

Expected outcome: These initiatives include concrete actions to improve internal management in the area of occupational health and safety and to support tesa in achieving its strategic goals.

Material topics addressed: Occupational health and safety

tesa health management program

Description: The goal of tesa's health management program is to sustainably promote the health and well-being of all employees. The program focuses on preventive measures to reduce stress, strengthen individual resources and create a healthy working environment in the long term. Offerings such as ergonomic workplace design, exercise and nutritional programs, regular check-ups, social counseling and psychological counseling are designed to support employees with their physical and mental health. Everything offered by the company health management program can be viewed via intranet.

Scope: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH, tesa Manufacturing GmbH
Time horizon: Ongoing

Expected outcome: Increased employee resilience and long-term promotion of health.

Material topics addressed: Health and safety

Actions Related to Equal Treatment and Opportunities for All Consumer
To promote our corporate culture, we focus on: training and skills development as part of our "Global DE\&I Knowledge Framework," event offerings and the establishment and promotion of employee resource groups that work with the DE\&I team to focus on the needs and interests of different minorities.

Representative body for people with severe disabilities
Description: The Beiersdorf AG representative body for people with severe disabilities represents the interests of employees with severe disabilities and equivalent status as well as those at risk of disability. Its main task is to promote their participation in working life, provide support and actively represent them in company actions and initiatives. Information on our representative body for people with severe disabilities can be found via our internal intranet.

Scope: All German Beiersdorf AG sites
Time horizon: Ongoing
Expected outcome: Better integration of employees with severe disabilities and equivalent status into everyday working life.

Material topics addressed: Equal treatment and opportunities for all
Training and skills development
Description: Our "Global DE\&I Knowledge Framework" provides our employees with training on the topic of diversity in various formats. The "Global DE\&I Essentials Journey" training program uses a special "train-the-trainer" concept to provide middle managers with a sustainable bedrock of DE\&I knowledge as part of our largest learning initiative and strengthens the inclusive leadership of teams.

Scope: All global Beiersdorf AG sites
Time horizon: Until December 31, 2025
Expected outcome: We want to use the "Knowledge Framework" to promote a more inclusive corporate culture that enriches us with different perspectives, making us more innovative. By training middle management, we expect to promote a team culture in the long term in which everyone feels respected and able to express their authentic personality.

Material topics addressed: Diversity, training and skills development
Information events with a focus on Diversity, Equity \& Inclusion
Description: We offer various events on the topic of diversity. Events in the reporting year included:

• Keynote speech for Black History Month by Prof. Dr. Lorenz Narku Laing, winner of the Germany Diversity Award 2023, on anti-racism and discrimination
• Keynote speech for IWD 2024 by Dan Guinness, which highlighted the divided perspectives of Generation Z on the topic of gender.
• On the occasion of political discussions, a fireplace chat took place under the title "Taking a Stance - Values in Times of Crisis Now and Then." In the discussion with Dan Unger, the great-grandson of our first chairman Willy Jacobson, attitude issues from the past 142 years as well as our position against extremism and racism were discussed.

Scope: All global Beiersdorf AG sites

Time horizon: Ongoing

Expected outcome: We use keynote speeches to broaden the knowledge horizons of our employees and promote a culture of diversity and openness.

Material topics addressed: Diversity, training and skills development

Employee communities and grassroots initiatives

Description: With the establishment of the new employee community "ability" for employees with disabilities in 2024, we now have a total of seven employee communities that are active in the areas of LGBTIQ $+{ }^{9}$, gender diversity, generations, fathers, and cultural diversity in the workplace. The DE\&I team regularly interacts with the various communities, which offer trainings and events, among other things. These include:

• "Be You" - the LGBTIQ+ community, which aims to raise awareness of LGBTIQ+ issues and create an even more inclusive environment.
• "#SisterhoodisPower" - the grassroots community where women empower each other in their careers.
• "LEAD NETWORK Community" - a group of Beiersdorfers who belong to the Europe-wide "LEAD Network" and aim to drive gender parity across Europe together with employees at other companies.
• "New Generation 50+" - a network representing the interests of the older generation.
• "WEnited" - a group of international staff who aim to promote dialog and cohesion between international coworkers.
• "dad.icated" - a community of fathers, fathers-to-be, and allies, to encourage making their own idea of life as a father a reality.

Scope: All Beiersdorf AG sites in Hamburg

Time horizon: Ongoing

Expected outcome: Our employee communities and grassroots initiatives made a contribution to promoting an inclusive "we culture" in the reporting year. They ensure that our employees' voices are heard and that their different needs are incorporated into our DE\&I strategy.

Material topics addressed: Diversity, training and skills development

Educational measures on diversity in management positions

Description: We use specific educational measures to encourage discussions on diversity in management positions worldwide; the following actions in the reporting year are particularly worth highlighting:

• For International Women's Day on March 8, we focused on the campaign theme #InspireInclusion in 2024. During a global and hybrid event, we used various sessions and testimonials to convey how important it is to create a better, more inclusive world for women and for all of us.

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[^0]: ${ }^{9}$ LGBTIQ+ stands for Lesbian, Gay, Bisexual, Transgender, Intergender, Queer, and more.

• The eighth "Wo*Men in Leadership Convention," which took place on November 12, 2024 and was aimed at all employees worldwide, offered a platform for dialog. Under the motto "Winning with Gender Parity," the program comprised various keynotes, "change-making" sessions, and interactive master classes. A speed-dating format also enabled attendees to talk directly to our Executive Committee and various managers from the most senior level. For the first time, there were also local sessions in various regions (e.g., Dubai, Eastern Europe, Brazil, and North America), giving the convention an international focus. The overarching message of the event was: "To be successful, we promote equality and inclusion. Diversity is crucial to us and together we inspire transformative change for an inclusive work environment and society." Some 350 colleagues attended the event in person in the auditorium, with over 1,200 employees following via the livestream.

Scope: All global Beiersdorf AG sites
Time horizon: Ongoing
Expected outcome: We use regular information events and discussion formats to broaden our employees' knowledge horizons and promote a culture of diversity and openness.

Material topics addressed: Diversity, training and skills development

Female Talent Program

Description: In the reporting year, we continued the "Female Talent Program" in cooperation with "Shape Talent," a London-based company. A third cohort completed the "Female Leadership in Finance" program in 2024 while the "StrongHER" supply chain program saw its first cohort of successful graduates.

Scope: All global Beiersdorf AG sites
Time horizon: Ongoing
Expected outcome: These actions are designed to promote gender equality and break down barriers so that women can realize their full potential.

Material topics addressed: Gender equality
Equal pay analysis
Description: At Beiersdorf, we are committed to equal pay and consider it a cornerstone of our Diversity, Equity \& Inclusion strategy. To identify pay gaps and understand their causes, we launched an equal pay analysis in selected pilot countries/companies in 2023, which we expanded further in 2024. We aim to carry out the analysis for all companies in 2025.

Scope: All global Beiersdorf AG sites including the sites of our brand La Prairie
Time horizon: Until December 31, 2025
Expected outcome: Achieving transparency over wage differences
Material topics addressed: Gender equality and equal pay for work of equal value

Talent Processes

Description: The Beiersdorf Talent Processes are a central component of talent management and take place annually. With the support of the HR department, management teams calibrate the potential

levels and development opportunities of all employees. The goal is to develop all employees, identify talents and potential leaders, create tailored development plans, and plan succession scenarios for key positions. Through the Talent Processes, we aim to identify talents, build strong and measurable talent pipelines and pools, support and challenge our talents, provide them with calibrated feedback and a solid foundation for their further professional and personal development, and foster a performanceoriented corporate culture.

Scope: All global Beiersdorf AG sites
Time horizon: Ongoing
Expected outcome: Identification of talents, determination of development steps for each employee, and establishment of succession planning for key positions

Material topics addressed: Training and skills development

Performance Management

Description: The purpose of the Performance Management process is to foster a constructive dialogue between employees and their direct supervisors to create an environment that supports both performance and personal growth. A reliable and trustworthy communication culture is based on transparent and comprehensible feedback. The skills of our employees form the foundation on which both individual development and corporate strategies can thrive. For successful further development, continuous feedback on one's own performance and behavior, as well as a realistic assessment of available development and growth opportunities, are essential. At Beiersdorf AG and its German subsidiaries, performance management is regulated through the respective company agreements.

Scope: All global Beiersdorf AG sites
Time horizon: Ongoing
Expected outcome: Development of a sustainable feedback culture and further development of employees

Material topics addressed: Training and skills development

Training Programs

Description: All employees are required to participate in training sessions on compliance topics such as data protection, anti-discrimination, prevention of harassment, child labor, forced labor, and ethical conduct. Training materials are regularly updated to reflect changes in laws, policies, and business practices. Attendance lists, recording dates and topics, are maintained to ensure compliance with regulations and to evaluate the effectiveness of the training. In addition to compliance training, voluntary programs are also available, such as training on occupational safety, leadership skills, and intercultural communication. These programs aim to enhance employees' professional and social skills and support a responsible corporate culture. Furthermore, special training sessions on topics such as innovation management and digital competencies are regularly offered to prepare employees for the challenges of an ever-changing work environment.

Scope: All global Beiersdorf AG sites
Time horizon: Ongoing
Expected outcome: Training and competency development of our employees
Material topics addressed: Training and skills development

Education and Talent Development
Description: Beiersdorf offers comprehensive training programs to ensure highly qualified professionals in both technical and commercial fields. At the Hamburg site, training is provided for technical professions such as industrial clerk, clerk for digitalization management, IT specialist, chemical laboratory technician, chemical technician, and mechatronics technician.

Scope: All German Beiersdorf AG sites
Time Horizon: Ongoing
Expected Outcome: Training of skilled workers and talent development
Material topics addressed: Training and skills development
In the course of our reporting, we found that we do not currently have any global actions on specific topics, in particular working time, social dialog, collective agreements and freedom of association. This is due to the ongoing development of corresponding global programs and initiatives, which are currently being implemented primarily at local or regional level. For example, we have concluded extensive catalogs of measures (works agreements) with the German works councils to improve working conditions. We are actively working on closing these gaps over the next ten years in order to ensure comprehensive reporting in the future. Beiersdorf nevertheless ensures that the minimum standards in these areas are met in accordance with national laws. Responsibility for this lies with local and regional HR managers.
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Different perspectives help us better understand the needs of our customers while simultaneously enhancing the innovative spirit of tesa. This is why our HR departments and managers around the world attach great importance to preventing discrimination of any kind. We are committed to diversity and equal opportunities in all aspects of the company.

We also support programs for the integration of disadvantaged groups. In our headquarter in Norderstedt, we work together with "Elbe Nord," a company that trains and employs people with disabilities.

Representative body for people with severe disabilities
Description: tesa SE's representative body for people with severe disabilities represents the interests of employees with severe disabilities and equivalent status as well as those at risk of disability. Its main task is to promote their participation in working life, provide support and actively represent them in company actions and initiatives. Information on our representative body for people with severe disabilities can be found via our intranet.

Scope: tesa SE, tesa Werk Offenburg GmbH, tesa Werk Hamburg GmbH, tesa Manufacturing GmbH
Time horizon: Ongoing
Expected outcome: Better integration of employees with severe disabilities and equivalent status into everyday working life.

Material topics addressed: Equal treatment and opportunities for all

Talent Review Process

Description: The tesa "Talent Review Process" is a key component of our talent management activities and takes place annually. With the support of the HR department, management teams calibrate assessments of their employees' performance and potential. The aim is to identify talented individuals and potential managers, create tailored development plans and plan succession scenarios for key positions. Through the "Talent Review Process," we endeavor to identify talent, build strong and measurable talent pipelines and pools, promote and challenge talent, provide them with calibrated feedback and a solid foundation for their development and foster a performance-oriented corporate culture.

Scope: Global, Business Segment tesa
Time horizon: Ongoing
Expected outcome: Identification of talent, definition of development steps for each employee and succession planning for key positions.

Material topics addressed: Training and skills development

tesa Performance Management (tPM)

Description: The purpose of the tPM ("tesa Performance Management") system is to promote a constructive dialog between employees and their direct supervisors in order to create an environment that supports both performance and personal growth. A reliable and trusting culture of discussion is based on transparent and comprehensible feedback. The skills and potential of our employees form the basis on which both individual development and business strategies can flourish. Continuous feedback on personal performance and behavior as well as a realistic assessment of available development and growth opportunities are essential if employees are to develop successfully. The tPM system is governed by Group works agreement KBV t-74.

Scope: Global, Business Segment tesa
Time horizon: Ongoing
Expected outcome: Development of a sustainable feedback culture and employee development.
Material topics addressed: Training and skills development

tesa Competencies Review (tCR)

Description: The "tesa Competencies Review" (tCR) comprises a 2.5-day Development Center component and a subsequent Learning Journey. Participation in the tCR is by nomination as part of the annual Talent Review and its aim is to provide participants with a targeted analysis of their strengths and areas for development in work-related situations. After completing the tCR, participants receive detailed feedback and work out specific development measures together with their supervisors, the HR department and tCR colleagues. These actions are recorded in a "Development Action Plan" (DAP) and serve as the basis for further professional development. The expected outcome is an in-depth insight into personal strengths and areas for improvement, the validation of potential for future career steps and the expansion of participants' self-reflection skills.

Scope: Global, tesa Business Segment
Time horizon: Ongoing
Expected outcome: Creation and definition of a "Development Action Plan."
Material topics addressed: Training and skills development

Training programs
Description: All employees are required to participate in compliance training on topics such as data privacy, anti-discrimination, prevention of harassment, child labor, forced labor and ethical conduct. Training materials are updated regularly to reflect changes in laws, policies and business practices. Attendance records, including dates and topics, are documented to demonstrate adherence to the regulations and to monitor the effectiveness of the training. In addition to compliance training, other voluntary programs are offered, such as training on occupational safety, leadership skills, intercultural communication, conflict management and sustainable business practices. These programs are designed to develop employees' professional and social skills and promote a responsible corporate culture. Special training courses on topics such as innovation management and digital skills are also offered regularly to prepare employees for the challenges of a constantly changing working world.

Scope: Global, tesa Business Segment
Time horizon: Ongoing
Expected outcome: Training and skills development of our employees.
Material topics addressed: Training and skills development
Training and promotion of young talent
Description: tesa offers comprehensive training programs and dual degree programs to secure highly qualified specialists in technical and commercial fields. At the Norderstedt, Hamburg-Harburg and Offenburg sites, training in technical professions is offered, with courses available for chemical laboratory technicians, chemical technicians, electronics technicians for industrial engineering, industrial mechanics, machine and plant operators and mechatronics technicians. We also offer dual degree programs in Business Administration, Data Science, Industrial Engineering, Mechanical Engineering and Sustainable Digital Business Management at our sites in Norderstedt and Offenburg.

Scope: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg
Time horizon: Ongoing
Expected outcome: Training of specialists and promotion of young talent.
Material topics addressed: Training and skills development
In the course of our reporting, we found that we do not currently have actions on certain topics, in particular gender equality and equal pay for equal work. This is due to the ongoing development of corresponding programs and initiatives. We are actively working to eliminate these gaps as part of a global "Social Sustainability" program to ensure comprehensive reporting in the future. However, we are already working to meet these requirements as part of our CSRD reporting. To this end, we will carry out a global gender pay gap analysis and take appropriate action based on the results.

Targets Related to the Company's Own Workforce

Targets in Relation to Working Conditions

Consumer
Occupational safety target: No accidents
Description: Our strategic objective is to reduce the number of occupational accidents and workrelated ill health as well as excessive physical and psychological stress factors to zero.

Relationship to policies: This target is intended to help us implement our "Safety \& Health Policy" and promote our health protection activities.

Base year and baseline: N/A, annual target achievement
Scope: All global locations of Consumer Business Segment (production centers and offices) including self-operated logistic centers

Progress: In the production and logistic centers, the "Recordable Incident Rate" (RIR) in 2024 was 2.46 accidents per million working hours. The overall RIR in 2024 including the offices was 2.42 accidents per million working hours. This rate includes all injuries resulting in lost time as well as cases of work restrictions and medical treatment over and above first aid.

Monitoring the target: We monitor progress using the overall "Recordable Incident Rate" (RIR). These are tracked annually.

Stakeholder involvement in target setting: The employees at the production and logistics centers were involved via the local SHE managers (Security, Health \& Environment) in setting the target.

In the course of our reporting, we found that we currently have no global targets on specific topics, in particular working time, work-life balance, social dialog, collective bargaining agreements, and freedom of association. This is due to the ongoing development of corresponding global programs and initiatives, which are currently being implemented primarily at local or regional level. For example, we have entered into extensive agreements on targets for improving working conditions as part of works agreements with the German works councils. We are actively working on closing these gaps over the next ten years in order to ensure comprehensive reporting in the future. Beiersdorf nevertheless ensures that the minimum standards in these areas are met in accordance with national laws. Responsibility for this lies with local and regional HR managers.
tesa
The well-being of our employees is of the utmost importance to us, and we have a responsibility to promote and maintain it in the long term. This concern not only strengthens our corporate culture, but also makes us more attractive to talent and sets us apart from our competitors. As a global company, we are committed to creating comparable working conditions and adapting them to local and national conditions worldwide.

Occupational safety target: Vision Zero
Description: tesa aims for continuous improvement with the ultimate target of zero workplace accidents while maximizing effectiveness and efficiency.

Relationship to policies/strategies: This target is intended to help with our implementation of the tesa "Occupational Health and Safety Policy."

Base year and baseline: N/A

Scope: Global, tesa business segment
Progress: Our accident frequency rate (AFR) documents all accidents at work that result in at least one day's absence from work. At tesa, the AFR in 2024 was 3.3 accidents per million working hours. The AFR is a synonym for the number of reportable occupational accidents required by the ERSR standard and therefore corresponds to the definition.

Monitoring the target: We monitor progress using the AFR. This is tracked annually.
Material topics addressed: Health and safety
Stakeholder involvement in target setting: No stakeholders were involved in setting the target.
In the course of our reporting, we found that we currently have no targets on specific topics, in particular working time, work-life balance, social dialog, collective bargaining agreements, and freedom of association. This is due to the ongoing development of corresponding programs and initiatives. We are actively working to eliminate these gaps as part of a global "Social Sustainability" program to ensure comprehensive reporting in the future. tesa ensures, however, that the minimum standards in these areas are met in accordance with national laws. Responsibility for this lies with local and regional HR managers.

Targets in Relation to Equal Treatment and Opportunities for all Consumer
Beiersdorf Gender Parity Ambition (management levels 1-4)
Description: By 2025, we wanted to achieve a 50:50 gender balance in management positions (management levels 1-4) in the Consumer Business Segment worldwide.

Relationship to policies/strategies: Our aim with this target is to contribute to our "Diversity, Equity and Inclusion Roadmap" and promote equal opportunities within the company.

Base year and baseline: 2020; in 2020, the gender balance of all management positions (management levels 1-4) worldwide was $45.5 \%$ at the end of the year.

Scope: All global Beiersdorf AG sites
Progress: Gender parity was achieved ahead of schedule: as of September 2023, 50.3\% of leadership positions worldwide were held by women. At the end of the 2024 reporting year, the value remained constant at $51.9 \%$.

Monitoring the target: The metrics are collected every six months at global, regional and functional level and shared with the Executive Board. HR business partners and managers develop specific actions based on this data.

Stakeholder involvement in target setting: No stakeholders were involved in setting the target.
Representation of women in top management
Description: In addition to our global "Gender Parity Ambition," in Germany we are bound by the legal regulations on the equal participation of men and women in leadership positions. In accordance with §76 Paragraph 4 AktG, the Executive Board has set binding targets for Beiersdorf AG to increase the proportion of women for the two management levels below the Executive Board, which must be achieved by the end of 2026. We are also subject to the statutory obligation of a minimum proportion of at least $30 \%$ women and men on the Supervisory Board and at least one woman on the Executive Board. Based on this, the Supervisory Board has set a voluntary target of $30 \%$ for the proportion of women on the Executive Board.

• Executive Board: at least 30\% proportion of women
• First management level: at least $35 \%$ proportion of women by December 31, 2026
• Second management level: at least 50\% proportion of women by December 31, 2026
• Supervisory Board: at least 30\% proportion of women

Relationship to policies/strategies: Our aim with this target is to contribute to our "Diversity, Equity and Inclusion Roadmap" and promote equal opportunities within the company.

Base year and baseline: 2022 and 2023; in 2022, the proportion of women on the Executive Board was $38 \%$, in the first management level $31 \%$ and in the second management level $48 \%$. In 2023, the proportion of women on the Supervisory Board was $41.7 \%$.

Scope: Beiersdorf AG
Progress: We have already achieved three quarters of our targets in the reporting year. We will probably reach the missing quarter on time as well. The target variables mentioned above are contrasted by the following actual figures:

• Executive Board: $42.9 \%$
• First management level: $43.9 \%$
• Second management level: $46.8 \%$
• Supervisory Board: $58.3 \%$

Monitoring the target: The metrics are collected every six months at global, regional and functional level and shared with the Executive Board. HR business partners and managers develop specific actions based on this data.

Stakeholder involvement in target setting: No stakeholders were involved in setting the target.
Equal pay
Description: Our goal is to achieve the "Universal Fair Pay Leader" certification by 2026. The internationally recognized certification process is a reliable guide through the complex jungle of certifications and is an effective control, management and communication tool for the implementation of equal opportunities and equality in companies and organizations. In Germany, the certification is awarded by the "UNIVERSAL FAIR PAY CHECK".

Relationship to policies/strategies: Our aim with this target is to contribute to our "Diversity, Equity and Inclusion Roadmap" and promote equal opportunities within the company.

Base year and baseline: 2024; at the end of the reporting year, there was a $0.98 \%$ adjusted pay gap in favor of male employees. The assessment was conducted in 50 countries, covering around $70 \%$ of our global workforce. The assessment will be expanded to the entire workforce in 2025.

Scope: All global locations of Beiersdorf AG including the locations of our brands La Prairie and Chantecaille

Progress: We expect to achieve this target in 2026. To achieve this, we must keep our adjusted pay gap at up to $1 \%$ and our unadjusted pay gap at up to $10 \%$.

Monitoring the target: The metrics are collected annually at global, regional and functional level and submitted to our external certification partner. HR business partners and managers use this data to develop specific actions to eliminate inequality.

Stakeholder involvement in target setting: No stakeholders were involved in setting the target.

Training and skills development

Description: We want to use our "Global DE\&I Knowledge Framework" to provide our employees with training on the topic of diversity in various formats. The "Global DE\&I Essentials Journey" training program uses a special train-the-trainer concept to provide around $80 \%$ of or 3,000 global middle managers with a sustainable foundation of DE\&I knowledge by 2025 as part of Beiersdorf's largest learning initiative and strengthens the inclusive management of teams. We also offer "Choosing Our Words With Care", an open training program on inclusive language.

Relationship to policies: Our aim with this target is to contribute to our "Diversity, Equity and Inclusion Roadmap" and further develop our managers.

Base year and baseline: 2024; at the end of the reporting year, the number of managers trained was estimated $40 \%$, based on the number of cohorts conducted and the planned number of participants.

Scope: All global locations of Beiersdorf AG
Progress: We expect to achieve this goal by December 31, 2025.
Monitoring the target: The metrics are continuously collected at global, regional and functional level via the attendance lists for training sessions.

Stakeholder involvement in target setting: No stakeholders were involved in setting the target.
tesa
Our goal at tesa is to create a working environment in which all employees have equal opportunities. We endeavor specifically to promote diversity and inclusion in order to enhance our innovative capacity and better understand the needs of our customers.

Increasing the proportion of women in leadership positions
Description: We have set ourselves the target of having women account for $30 \%$ of positions at the first level below the Executive Board and 35\% of positions at the second level within tesa SE by mid-2027. The collection of this number is not a metric required by the ESRS standard and therefore does not correspond to the metric information for S1-9 diversity information.

Base year and baseline: N/A
Scope: tesa SE
Progress: The progress is continuously monitored and reviewed. At present, the percentage of women at the first level is $7.14 \%$ and at the second levels $22.62 \%$.

Monitoring the target: Annual survey and analysis of gender diversity at the relevant management levels
Stakeholder involvement in target setting: No stakeholders were involved in setting the target. The target is based on international guidelines on gender equality, in particular the requirements of the General Equal Treatment Act (AGG) in Germany and the EU Equal Treatment Directive (Directive 2006/54/EC).
tesa Performance Management (tPM)
Description: Standardized employee performance reviews at all tesa sites worldwide are designed to strengthen the feedback culture and promote a reliable culture of discussion. We aim to achieve this through long-term, honest and respectful discussions between employees and managers, focusing not only on mutual feedback regarding the previous period but also on the further development of employees. Every employee worldwide who is eligible should also have a development meeting.

Relationship to policies: This target is intended to help with the implementation of KBV t-74.
Base year and baseline: N/A
Scope: Global, tesa Business Segment
Progress: The target is continuously tracked and monitored. In 2024, 79\% of employees in our headquarter who were eligible for a feedback meeting received one. A reporting system will be introduced in 2025 so that this data can be reported worldwide from 2025.

Monitoring the target: Annual survey and analysis of the number of employees who have had a feedback meeting.

Stakeholder involvement in target setting: No stakeholders were involved in setting the target.

Training and skills development

Description: Global mandatory training serves to ensure that all eligible employees have the necessary knowledge and skills to meet company-wide standards and regulatory requirements. The training courses can be completed via our learning hub and are not aimed at commercial employees. Mandatory training includes:

• "Anti Corruption": Raising awareness and preventing corruption
• "Antitrust Compliance": Promoting a behaviour in line with competition
• "Code of Conduct": Communicating standards of behavior and corporate values
• "Cyber Security": Increasing awareness of IT security and protection against cyber threats
• "Data Privacy": Ensuring understanding of how personal data is handled
• "Global Procurement": Training on procurement policies and processes
• "Sustainability Program": Promoting knowledge and commitment in the area of sustainability
• "PME@tesa": Developing project management skills

These training courses contribute to the further training of employees and support compliance requirements.

Relationship to policies: HR-Compliance Guideline/Trainings
Base year and baseline: N/A
Scope: Global, tesa Business Segment
Progress: The key figures are continuously collected at both global and regional levels through training participation lists. At the end of the reporting year, the following participation rates in the mandatory training courses were achieved: "Anti Corruption": 98.38\%, "Antitrust Compliance": 98.73\%, "Code of Conduct": 95.60\%, "Cyber Security": 99.45\%, "Data Privacy": 97.50\%, "Global Procurement": 78.88\%, "Sustainability Program": 95.10\%, "PME@tesa": 80.4\%.

Monitoring the target: The target is monitored by analyzing participation rates.
Stakeholder involvement in target setting: No stakeholders were involved in setting the target.
In the course of our reporting, we found that we do not currently have targets for certain topics, in particular equal pay for work of equal value. This is due to the ongoing development of corresponding programs and initiatives. We are actively working to eliminate these gaps as part of a global "Social

Sustainability" program to ensure comprehensive reporting in the future. tesa ensures, however, that the minimum standards in these areas are met in accordance with national laws. Responsibility for this lies with local and regional HR managers.

Metrics Related to the Company's Own Workforce

The collection of key figures related to the company's workforce includes both Beiersdorf brands and the brands La Prairie and Chantecaille in the Consumer Business Segment. The joint venture NIVEA-Kao in Japan is not included in this. Unlike in the management report, the key figures presented here exclude interns.

Characteristics of the company's employees

Headcount of Employees

	Unit	Consumer	tesa	Total
Male		Headcount	7,656	3,473
Female		Headcount	9,640	1,906
Other		Headcount	3	-
Total employees		Headcount	17,299	5,379

Employee Turnover

Number of employees who have left the company	Unit	Consumer	tesa	Total
		Headcount	2,625	648
Turnover rate	\%	15	12	14

Employees by Contract Type \& Gender

	Male			Female			Other			Total
	Unit	Consumer	tesa	Total	Consumer	tesa	Total	Consumer	tesa	Total	Total
Number of employees	Headcount	7,656	3,473	11,129	9,640	1,906	11,546	3	-	3	22,678
Number of permanent employees	Headcount	7,018	2,855	9,873	8,826	1,579	10,405	2	-	2	20,280
Number of temporary employees	Headcount	637	618	1,255	786	327	1,113	1	-	1	2,369
Number of nonguaranteed hours employees	Headcount	1	-	1	28	-	28	-	-	-	29
Number of fulltime employees	Headcount	7,537	3,366	10,903	8,569	1,594	10,163	3	-	3	21,069
Number of parttime employees	Headcount	119	107	226	1,071	312	1,383	-	-	-	1,609

Diversity metrics
Gender Diversity at the Top Management Level

| | Unit | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Remuneration metrics

We analyzed the salaries of around 17,000 of our employees, which corresponds to around $75 \%$ of our workforce as of end of the reporting year. The calculation is based on the target salaries for 2024, which were determined after the announcement of the company bonus in April 2024. The unadjusted difference in annual target remuneration is 1,09\% (in favor of men).

Gender Pay Gap (unadjusted)

Consumer	tesa	Total
1.72	8.84	1.09

The ratio of the annual target remuneration of the highest-paid individual to the median annual target remuneration of all employees was 63.80 in 2024.

Ratio of the Remuneration of the Highest-Paid Individual to the Median Remuneration of All Employees

Consumer	tesa	Total
61.07	67.75	63.80

Entity-specific information

In accordance with ESRS S1-16, only the "Unadjusted Pay Gap," which measures the average salary difference between men and women, would be reported. However, this figure is not very meaningful, as it does not take into account factors that can legitimately explain salary differences, such as different job levels, sectors of activity or sites. An unadjusted figure therefore only provides a superficial representation of the salary situation without revealing the actual causes of the differences.

To ensure a more substantiated and transparent analysis, we also calculate the "Adjusted Pay Gap." This takes into account explanatory factors such as job level and legal entities and shows the residual differences that cannot be explained by standardized and verifiable criteria. The "Adjusted Pay Gap" therefore represents the actual gap and serves as a relevant indicator for possible pay inequalities.

By reporting the "Adjusted Pay Gap" separately, we aim to analyze salary differences in a more transparent manner and focus specifically on actual inequalities. This will enable us to derive and implement suitable actions to promote fairness and equal opportunities.

Due to different databases, the "Adjusted Pay Gap" is analyzed and displayed separately for the Consumer and tesa Business Segments.

For the Consumer Business Segment, we analyzed the salaries of approximately 12,000 of our employees, which represents approximately $70 \%$ of the Consumer workforce as of end of the reporting year. The calculation is based on the target salaries for 2024, which were determined after the announcement of the company bonus in April 2024. The adjusted difference in annual target compensation is $0.98 \%$ (in favor of men).

For the tesa Business Segment, we analyzed the salaries of approximately 5,000 of our employees, which represents approximately $93 \%$ of the tesa workforce as of end of the reporting year. The adjusted difference in annual target compensation is $1.11 \%$ (in favor of men). Outliers were not considered in the calculation.

Gender Pay Gap (adjusted)

	Consumer	tesa
	0.98	1.11

ESRS S2 - Workers in the Value Chain

Material Impacts, Risks and Opportunities

As part of our materiality assessment, we identified negative impacts on workers in our upstream value chain. To make our products available to customers worldwide, our business model relies on a globally structured supplier network as well as the workforce of our business partners. In this context, negative impacts can occur in the areas of working conditions (working time, adequate wage, freedom of association, collective bargaining) and in the area of equal treatment and opportunities for all (measures against violence and harassment in the workplace). Particularly for workers in the upstream value chain engaged in agricultural raw material extraction and in labor-intensive services, violations of other work-related rights (child labor or forced labor) can constitute potential negative impacts.

A detailed overview of all identified impacts, risks and opportunities and the methodology applied for the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

We see it as our responsibility to collaborate in our procurement strategy with business partners who share and demonstrably adhere to our corporate governance principles. Our goal is to minimize material negative impacts - this applies to our own sites and employees worldwide, as well as to workers throughout the value chain. For this purpose, the guidelines, processes, measures, complaint channels and targets explained in this chapter are developed and pursued.

In view of our global procurement of materials and services, the following groups of workers in particular may be subject to material impacts:

• Workers of subcontractors who perform activities at Beiersdorf production sites without being directly employed by Beiersdorf;
• Workers of direct business partners in manufacturing industries (such as the packaging industry) or in service industries;
• Workers engaged in labor-intensive service activities such as Value Added Services (VAS), i.e. services which go beyond mere product delivery and enhance brand presence;
• Workers in the upstream supply chain involved in raw material extraction, such as the palm oil or natural rubber industries.

Beiersdorf recognizes that negative impacts on workers in the value chain can be both systemic and isolated incidents. Systemic impacts primarily arise from the procurement of goods or services in countries and industries with poor legal human rights standards. However, isolated incidents are also possible, and often result from the misconduct of individuals or decision-makers at direct or indirect business partners.

We identify business-specific risks and potential impacts by means of an annual risk analysis. In this process, the countries with which Beiersdorf has business relationships are assessed against internationally recognized indices and information sources. This approach links country-specific risks to our existing supplier base.

Additionally, risk profiling is conducted at the level of individual business partners. To achieve this, we use external "EcoVadis IQ" software to generate a risk categorization for all procurement-relevant business partners. In the Consumer Business Segment, this process is applied to all business partners with an annual business volume exceeding $€ 50,000$. tesa applies a risk profiling approach independently of business volume, evaluating all active suppliers from the past two years. "EcoVadis IQ" uses specifically defined industry and sector risks, combined with information from a global sustainability performance database. We further expand this analysis with our own procurement data.

Based on this risk categorization, we establish a prioritization as the foundation for designing our measures.

In the procurement categories of renewable materials, the Consumer Business Segment conducted a risk analysis in collaboration with an external consultancy firm in 2020. This analysis identified critical product groups that require special attention. Details are provided in the chapter "ESRS S3 - Affected Communities."

Policies Related to Workers in the Value Chain

We define responsible sourcing as a supply chain in which all relevant laws are adhered to, human rights are respected, natural ecosystems are protected, climate effects are mitigated, and positive developments are promoted in the countries of origin of our materials and services. Fair working conditions and respect for the human rights of workers in our value chain are of particular importance in this context.

To achieve this, we have established corporate policies aimed at ensuring compliance with legal requirements and internationally recognized standards. These policies incorporate not only relevant legislation but also frameworks such as the United Nations' "Universal Declaration of Human Rights," the conventions of the International Labour Organization (ILO), the "Guidelines for Multinational Enterprises" of the Organisation for Economic Co-operation and Development (OECD), the ten principles of the UN Global Compact (UNGC), and the United Nations' "2030 Agenda for Sustainable Development." We also comply with country-specific regulations and official governmental requirements.

The following sections outline the policies that address the main identified impacts on workers in our value chain.

Consumer

Code of Conduct for Business Partners
Our "Code of Conduct for Business Partners" (CoC) addresses the material negative impacts we have identified on workers in our value chain. The CoC focuses on four critical areas:

1. Human rights and labor standards
2. Workplace health and safety
3. Corporate integrity
4. Environmental protection

The CoC obliges our business partners to prohibit practices such as child labor, forced labor, human trafficking, discrimination, restrictions on freedom of association, and violations of environmental and occupational safety regulations. It also mandates the provision of grievance mechanisms. The CoC was last updated in 2023.

Signing the CoC is mandatory for direct business partners with an annual business volume exceeding $€ 50,000$. The document also requires business partners to communicate the CoC's content to upstream partners, irrespective of industry or region. This also means ensuring that workers in precarious procurement situations, such as subcontracting, are protected by the same guidelines.

The CoC includes a foreword from the Vice President (VP) Corporate Sustainability, who also serves as our internal Human Rights Officer, and the VP Procurement. These roles are responsible for overseeing progress monitoring.

Declaration of Principles on Upholding Human Rights
Our "Declaration of Principles on Upholding Human Rights," which applies to Beiersdorf employees and business partners, emphasizes responsible sourcing strategies to ensure worker safety and health, as well as environmental protection across the value chain. The document explicitly prohibits child labor, forced labor, and human trafficking. It details our approach to human rights protection, covering such areas as:

• Setting up risk management,
• Annual risk analysis,
• Establishing preventative measures in our own operations, at direct and (where applicable) indirect suppliers, including evaluations of their effectiveness,
• Remediation measures in our own operations, at direct and, where applicable, indirect suppliers,
• Description of identified, prioritized risks, and
• Description of expectations on employees and suppliers concerning human and environmental rights.

The provision of a grievance mechanism is also addressed in this declaration of principles to systematically prevent violations and to provide workers with the opportunity to raise their voices. The declaration was most recently updated in December 2024.

Beiersdorf makes the "Declaration of Principles on Upholding Human Rights" available to the public and business partners, regardless of region or procurement category, via the download center on the company's website. Downstream business partners, such as retailers, can also receive the current statement upon request, along with an explanation of measures Beiersdorf has undertaken to fulfil its due diligence obligations under the German Supply Chain Due Diligence Act.

The VP Corporate Sustainability (who is also the Human Rights Officer) is the signatory of this statement. The Sustainability function is therefore responsible for ensuring that the content is up to date and that business partners comply with it.

Responsible Sourcing Policy
The "Responsible Sourcing Policy" of the Consumer Business Segment, described in detail in the chapter "ESRS S3 - Affected Communities," also requires compliance with international, national, and local human rights legislation and regulations.

TOTAL

Code of Conduct for Suppliers
The "Code of Conduct for Suppliers" (CoCS) of the tesa Business Segment similarly addresses material negative impacts on workers in our value chain. The CoCS primarily focuses on the following five critical areas:

1. Corporate integrity
2. Human rights and labor standards
3. Occupational safety
4. Environmental protection
5. Grievance mechanisms

The CoCS requires all tesa suppliers, regardless of the business volume, to support and respect international human rights and adhere to relevant guidelines and standards. Child labor, forced labor, discrimination, restrictions on freedom of association, violations of working time and wage regulations,

and violations of environmental and occupational safety regulations are not tolerated. The topic of human trafficking is not covered. Suppliers are required to pass on the CoCS specifications to their own suppliers. In this way, workers in potentially precarious procurement situations, such as subcontracting, should be protected by the same directive.

At tesa, the Chief Sustainability Officer (also Human Rights Officer) and the VP Global Procurement support the implementation of the CoCS. Both functions are responsible for monitoring and controlling progress.

Human Rights Policy Statement

Through tesa's "Human Rights Policy Statement," the company commits to strengthening human rights and preventing human rights violations both within its own operations and in its dealings with business partners. The statement outlines our approach to protecting human rights and adhering to environmental standards. It also addresses the provision of a grievance mechanism.

The tesa "Human Rights Policy Statement" is available online to the public and business partners, regardless of region or procurement category. The entire tesa Executive Board has signed the statement, making it collectively responsible for its implementation and compliance.

Responsible Sourcing Policy

The development of a corresponding policy for the tesa Business Segment is planned for 2025. This policy will form part of a broader "Sustainable Procurement Strategy," which is currently under development.

Processes for Engaging with Workers in the Value Chain

Beiersdorf aligns its measures to protect workers in the value chain with input from various civil society organizations (including NGOs and "Responsible Sourcing" initiatives in which Beiersdorf is an active member). This approach ensures that the interests of the affected workers are considered in our due diligence processes as effectively as possible through these intermediaries. The VP Sustainability is responsible for this consideration. The frequency of such consultations varies and usually takes place during the planning or continuation phases of field projects or after an audit has been conducted:

• Field projects conducted in the palm oil supply chain with local smallholders were planned and implemented in collaboration with NGOs such as the "World Wildlife Fund" (WWF), a strategic partner of Beiersdorf. These projects aim to counteract the material impacts such as child and forced labor in the palm oil supply chain. Details are provided in the chapter "ESRS S3 - Affected Communities."
• Our field project in the shea butter supply chain was planned and implemented in collaboration with the "Global Shea Alliance" (GSA) and our direct business partner AAK. Over five years, the project aims to support 10,000 shea collectors in Ghana and Burkina Faso. Women traditionally manage the harvesting and production of shea butter, securing their livelihoods and social status. This initiative seeks to reduce the material impact of discrimination and promote women's rights in the shea butter supply chain. Our collaboration with the GSA and AAK ensures the project is tailored to the specific conditions and needs of the target group.
• These projects include on-site training and promotion of local community development (e.g., improved access to education), and support for smallholders in adopting sustainable agricultural practices, such as reducing pesticide use, conserving water, and improving soil health. Collaboration with NGOs ensures that local knowledge, particularly regarding vulnerable groups or those working under precarious conditions in the upstream supply chain, is incorporated into decision-making.
• In 2020, Beiersdorf worked with a "Responsible Sourcing" consultancy firm to enable informed decision making on prioritizing critical procurement categories of renewable materials according

to sustainability criteria. The consultancy process incorporated the perspectives of particularly vulnerable groups into the risk analysis, thereby identifying impacts and defining priorities accordingly.

• Beiersdorf requires written confirmation of compliance with its "Code of Conduct for Business Partners" (see section "Policies related to Workers in the Value Chain") from its direct business partners. At the same time, we want to work closely with business partners to understand their challenges and provide targeted support. This includes practical, free training on human rights and environmental due diligence, to particularly support small or medium-sized business partners. Completing the training helps prevent negative impacts on workers and emphasizes the importance of whistleblowing mechanisms, enabling workers to raise their voices and contribute views or suggestions for improvement.
• As a member of the UN Global Compact, we are part of a broad network of government bodies, investors, research representatives and civil society organizations in which the private sector can take concrete measures to operate responsibly, protect human rights and fulfil obligations to society. The organizations also participating in the network, particularly from civil society, represent the perspectives of workers.

Compliance with these commitments is monitored through sustainability assessments and social audits. Audits conducted according to the standardized 4-pillar principle of the "Sedex Members Ethical Trade Audit" (SMETA) include evaluations of the supplier management of direct business partners, as well as interviews with their workers and those employed by subcontractors. This ensures that workers in the value chain are aware of their rights, that freedom of association is not suppressed, and that there is a framework in place for reporting violations within a protected environment. Where irregularities are identified, corrective actions are agreed to improve working conditions.

To provide additional avenues for workers in the value chain to raise concerns or report suspected violations, Beiersdorf offers additional anonymous reporting channels, which are discussed in the following section.

Channels for Workers in the Value Chain to Raise Concerns

Beiersdorf offers various channels for both internal and external individuals to report compliance violations and concerns, including human rights violations. The procedure for handling such reports is also described in the chapter "ESRS G1 - Business conduct." Reports can be made regardless of whether the violations occurred within the company's own operations or within its direct or indirect value chains.

The available channels include the BKMS ${ }^{\circledR}$-based whistleblowing system, "Speak up. We care." for the Consumer Business Segment and "Your voice. Our bond." for the tesa Business Segment. Employees and workers along the value chain have access to a protected, secure, and - where legally permissible anonymous reporting system. In the Consumer Business Segment, the Human Rights Officer and the Head of Sustainability Strategy \& Reporting are responsible for receiving and handling complaints related to risks and violations in the areas of human rights and environmental protection.

At tesa, the Compliance Manager in Legal Affairs and the Head of Sustainable Procurement are responsible for receiving and handling complaints related to risks and violations in the areas of human rights and environmental protection.

In the reporting year, the following case of human rights violations relating to workers in the value chain was reported at one of our service providers via the "Speak up. We care." whistleblower system: An allegation relating to discrimination and the unlawful termination of an employment contract. The allegation was investigated internally and externally. The investigation did not uphold of the allegation.

Additionally, we provide an email address for reporting concerns: incidents_cases@beiersdorf.com. Both this email address and the whistleblowing platform are communicated through the "Code of Conduct for Business Partners" along the value chain. Business partners are required to confirm, by signing the Code of Conduct, that they either promote Beiersdorf's reporting channels within their own organizations or prefer to provide their own reporting channels. Moreover, the free training offered to business partners, as mentioned earlier, emphasizes the importance of whistleblowing mechanisms for workers, enabling them to raise their voices and share views or suggestions for improvement. Beiersdorf's internal contact points can also be identified and contacted via the Beiersdorf website: Organizational Structure \& Contact on Beiersdorf Sustainability Website.

Finally, for complex risk supply chains, such as those involving palm oil, we work closely with direct raw material suppliers and other stakeholders. Through multi-stakeholder initiatives like the "Roundtable on Sustainable Palm Oil" (RSPO) and the "Action for Sustainable Derivatives" (ASD) (see chapter "ESRS S3 Affected communities"), we collectively investigate reported concerns, verify their validity, and collaboratively establish appropriate measures. No effectiveness check is carried out for the remedial measures taken.

Actions Related to Workers in the Value Chain

Beiersdorf has various processes and actions in place to prevent negative impacts on workers in the value chain. The measures address the following material topics: working conditions (working time, adequate wages, freedom of association, collective bargaining), equal treatment and opportunities for all (measures against violence and harassment in the workplace) as well as other work-related rights (child and forces labor). The foundation for these measures is formed by our "Code of Conduct for Business Partners" (Consumer) and "Code of Conduct for Suppliers" (tesa) (see section "Policies related to Workers in the Value Chain") as well as the previously mentioned "EcoVadis IQ"-based risk assessment process.

For direct business partners, Beiersdorf also undertook the following measures during the reporting year:

SMETA on-site audits for immediate business partners with high-risk profiles
Description: If business partners are classified as high-risk, the implementation of an on-site audit according to the "SMETA" 4-Pillar Protocol should be demonstrated. This measure aids in identifying actual negative impacts on workers in the value chain. The "SMETA" standard is a widely used social audit covering four core areas: working conditions, health and safety for employees, environmental performance, and business ethics. To ensure impartial evaluation, audits are conducted by independent auditors. "Sedex," the online platform managing completed audits and the administrator of the "SMETA" standard, collaborates with a list of globally operating and accredited auditing companies that must undergo certification for "SMETA" 4-Pillar Audits.

Scope: Global

Time horizon: Ongoing

Expected outcome: Irregularities are discussed with the responsible personnel at production sites, and corresponding corrective actions, including a timeline for implementation, are determined. Finally, these measures are verified by the original auditors. Once the measures are confirmed, the process

concludes. If auditors reject the measures, business partners must revise their actions. This continuous improvement process ensures that irregularities are progressively identified, documented, and resolved.
"EcoVadis" assessments for immediate business partners with medium-risk profiles Description: Business partners classified as medium-risk are required to undergo a sustainability assessment via the online platform "EcoVadis." This assessment provides insight into the likelihood of negative impacts occurring. The "EcoVadis" evaluations, which are already in use, focus on 21 sustainability criteria divided into four thematic areas: environment, labor and human rights, ethics, and sustainable procurement. The criteria are based on international sustainability standards such as the ten principles of the UN Global Compact, ILO conventions, Global Reporting Initiative (GRI) standards, ISO 26000, the CERES Roadmap, and the UN Guiding Principles on Business and Human Rights. To ensure high data quality, the responses provided by business partners are evaluated by specially trained "EcoVadis" analysts and converted into a scorecard.

Scope: Global. To standardize the rollout of sustainability assessments via "EcoVadis," Beiersdorf established a global "Procurement Support Center" in 2023. At tesa, this is covered by the Sustainable Procurement department.

Time horizon: Ongoing
Expected outcome: If the overall result falls below a certain threshold, we engage with the business partner to implement the prioritized improvement measures identified by the system.

To monitor progress on both measures, the Procurement function has defined internal performance indicators with a multi-year scaling system. These metrics are tracked monthly.

Consumer

The following measures are in place within the Consumer Business Segment to promote responsible supplier management in our operations and prevent negative impacts on workers in the value chain:

Supplier assessment based on sustainability criteria

Description: Social and environmental sustainability criteria are already part of the annual supplier assessment for strategic suppliers and form an integral part of the supplier management cycle.

Scope: Global, strategic suppliers
Time horizon: Annually
Expected outcome: Increased internal awareness and the establishment of ongoing dialogue about social and environmental sustainability with strategic suppliers.

Training on human rights due diligence for procurement staff
Description: In 2023, our procurement staff were trained on the requirements for fulfilling human rights due diligence obligations.

Scope: The training was delivered as live digital sessions for all procurement teams and was made available as a recording for later review.

Time horizon: 2023
Expected outcome: Enhanced understanding of due diligence processes in supplier management.

E-learning on human rights

Description: A mandatory e-learning course on human rights was launched during the reporting year.

Scope: Global

Time horizon: Ongoing

Expected outcome: Training employees on fundamental due diligence processes and emphasizing the importance of the "Code of Conduct for Business Partners."

Free training for business partners
Description: Support for small or smaller business partners in establishing human rights and environmental due diligence obligations through free training provided on the Beiersdorf website.

Time horizon: Ongoing

Expected outcome: Guidance as an optional offering for business partners.

Measures beyond direct business partners

The following initiatives go beyond direct business partners and aim to protect additional workers in the value chain:

Sustainable palm oil procurement

Sustainability criteria are integrated into the procurement of palm oil-based raw materials, guided by the requirements of international initiatives like RSPO certifications. Additional details on this and on community engagement in these supply chains, such as smallholder projects or financial support for local NGOs, are provided in the chapters "ESRS S3 - Affected communities" and "ESRS E4 - Biodiversity and ecosystems."

Al-based risk screening with "Sphera"

Description: To be informed early about potential negative impacts in our value chain, Beiersdorf continuously utilizes Al-based risk screening by "Sphera." This tool maps Beiersdorf's supply networks and monitors them by scanning various data sources and news outlets. If an identified risk affects a business partner, one of their subsidiaries, or a third company known in the supply network, Beiersdorf receives an alert via a customized dashboard.

Scope: Global

Time horizon: Ongoing

Expected outcome: Awareness of incidents within monitored supply chains.

All described measures require close cross-functional coordination, where responsibilities are distributed, but the content is largely developed collaboratively. If a business partner repeatedly exhibits non-compliance, fails to cooperate on corrective actions, or is involved in severe violations such as child or forced labor, the business relationship may be questioned and, if necessary, terminated.

The overarching responsibility for implementing Beiersdorf's human rights program lies with the Human Rights Officer, appointed by the CEO. Best practices from industry associations such as "AIMProgress" are integrated into these efforts. This initiative unites Beiersdorf with over 40 leading manufacturers in the "FMCG" industry to collaboratively advance sustainable procurement across the sector.

Additionally, the strategic partnership with WWF supports Beiersdorf's holistic sustainability approach. This collaboration helps incorporate ecological and, above all, social aspects into strategy evaluations, ensuring that the interests of affected groups are considered as effectively as possible in due diligence processes. Direct dialogue with companies of comparable size or position also plays an important role in assessing whether our measures are appropriate and effective.

tesa

New Sustainable Procurement division

Description: In late 2023, tesa established the "Sustainable Procurement" division within "Global Procurement" and expanded it with additional staff throughout 2024. The "Procurement Service Hub" also supports the implementation of these processes and measures. Furthermore, "Global Procurement" has taken on the role of an ESG expert for the supply chain.

The "Sustainable Procurement" department, embedded within the procurement function, was specifically created to develop and implement a responsible and supply chain-compliant purchasing strategy. In close collaboration with other involved departments, it ensures that all strategic decisions align with tesa's sustainability objectives.

Scope: Global

Time horizon: Ongoing

Expected outcome: The implementation of a responsible and supply chain-compliant purchasing strategy and that all strategic purchasing decisions are made in accordance with our sustainability strategy and its goals. Business partners have implemented sustainable practices in their own business practices.

Consumer und tesa

Review and further development of these actions

The review of our measures is particularly important when tensions arise between business pressures and potential negative impacts. Strategic decisions regarding future business directions, such as mergers and acquisitions, can affect workers in our value chains. Similarly, changes to our product portfolio, such as reformulating product formulas, may exclude high-risk raw materials and replace them with alternative ingredients. At the same time, the transition to a higher proportion of renewable materials could increase our dependence on agriculturally produced inputs, potentially impacting workers along the supply chain for these materials. Beiersdorf is aware of these trade-offs and incorporates them into the design of its measures.

Overall, our actions with regard to workers in the supply chain are effective, as only two instances of human rights violations were investigated through our risk screening in the reporting year, which were expected to have potential negative impacts on workers in our upstream and downstream value chain:

• One case of forced labor was identified in the cultivation of agricultural raw materials. The incident was investigated and improvement measures were implemented on site.
• A business partner was accused of not observing statutory rest breaks and failing to announce shift schedules in a timely manner. However, the investigation did not find any confirmation of the allegation.

No incidents were reported in the tesa business segment in the reporting year. Beiersdorf provides appropriate means and resources to deal with identified incidents with the highest priority. The functions responsible for implementing all of the aforementioned measures, such as the sustainability department or purchasing, were supported at an operational level by additional employees and other

resources in the reporting year. These include, for example, participation in external webinars and other training measures. Additional financial and advisory resources were made available for digitalization projects to develop and implement relevant processes.

Management further underscores the importance of these topics through regular updates and communication with the executive board and oversight committees.

Targets Related to Workers in the Value Chain

Beiersdorf has established targets aimed at managing significant risks and impacts on workers in the value chain to prevent such impacts from occurring. These goals do not address positive impacts on workers.

Consumer

The Consumer Business Segment has set the following targets for each reporting year:
Coverage of $90 \%$ of all expenditures with signed "Code of Conduct for Business Partners" Description: Over 90\% of Beiersdorf's global expenditures should be with suppliers who have signed our "Code of Conduct for Business Partners." This goal applies regardless of the version of the Code of Conduct, including the updated 2023 version. In 2024, the rate was achieved.

Scope: Global, excluding Chantecaille and La Prairie
Assumption: Business partners who sign our Code of Conduct are made aware of our environmental and human rights requirements, committing to respect these standards and avoiding negative impacts on workers.

Time horizon: Ongoing
Target monitoring: Progress against the metrics is continuously collected and shared monthly at a global level with the Vice Presidents Procurement and Sustainability. In addition, relevant members of the Executive Board are informed quarterly. Relevant data derives from internal master data and contract management systems.

Target achievement: $91 \%$
Involvement of stakeholders in target setting: The perspectives of workers in the value chain or their legitimate representatives were not included in the target setting.

Coverage of $100 \%$ of all business partners with a business volume exceeding $€ 50,000$ through risk screening
Description: All Beiersdorf business partners globally with an annual business volume exceeding $€ 50,000$ should have a risk profile generated through the external platform "EcoVadis IQ" during the reporting year. Business partners falling below this threshold were excluded from this goal. In 2024, the target was achieved.

Scope: Global, excluding Chantecaille and La Prairie
Assumption: Supplier risk profiles enable prioritization and focused enactment of the measures described above.

Time horizon: Ongoing

Target monitoring: Progress against the metrics is continuously collected and shared monthly at a global level with the Vice Presidents Procurement and Sustainability. In addition, relevant members of the Executive Board are informed quarterly. Relevant data derives from internal master data systems and the aforementioned external platform "EcoVadis IQ."

Target achievement: $100 \%$
Involvement of stakeholders in target setting: The perspectives of workers in the value chain or their legitimate representatives were not included in setting the target.

The target setting process follows a multi-stage approach. Operational teams from Procurement and Sustainability propose a target, which is reviewed with the Head of Sustainability Strategy \& Reporting and the Director of Procurement Excellence. The proposal is then presented to the Vice President Sustainability and the Vice President Procurement for finalization and approval.
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The tesa Business Segment has set the following targets:
Sustainability rating for all suppliers of 45+
Description: By 2030, at least $80 \%$ of the total procurement volume will be with suppliers who achieve an EcoVadis score of 45 or higher and meet our standards for responsible supply chains.

Scope: Global
Assumption: Business partners who participate in EcoVadis disclose the extent to which sustainability management is integrated into their business activities and processes and whether they meet our requirements for a responsible supply chain.

Time horizon: Ongoing
Target monitoring: Progress against the metrics is continuously collected and shared monthly with the Vice President Global Procurement.

Target achievement: $56 \%$
Involvement of stakeholders in target setting: The perspectives of workers in the value chain or their legitimate representatives were not included in the target setting.

Signing of Code of Conduct for Suppliers
Description: By 2030, 100\% of global expenditures will be with suppliers who have signed the "Code of Conduct for Suppliers."

Scope: Global
Assumption: Business partners who sign our CoC are familiarized with our environmental and human rights requirements and sign that these will be respected and that there will be no negative impact on workers.

Time horizon: Ongoing
Target monitoring: Progress against the metrics is continuously collected and shared monthly with the Vice President Global Procurement.

Target achievement: $74 \%$
Involvement of stakeholders in target setting: The perspectives of workers in the value chain or their legitimate representatives were not included in the target setting.

At tesa, the Chief Sustainability Officer, who also serves as the internal Human Rights Officer, and the Vice President Global Procurement are responsible for setting these goals.

ESRS S3 - Affected Communities

Material Impacts, Risks, and Opportunities

The materiality assessment identified negative impacts on indigenous communities exclusively for the Consumer Business Segment. These impacts could result from our business activities and the related supply chains. ${ }^{10}$ As a cosmetics manufacturer, Beiersdorf uses substances based on palm (kernel) oil. Palm oil was identified in our sustainability strategy as a high risk raw material, due, among other reasons, to potential negative impacts on the environment and affected communities in the main countries of origin, Indonesia and Malaysia. The expansion of palm oil plantations may be associated with displacement of certain communities and conflicts regarding land rights, among other issues. The early detection and reduction of negative impacts on (indigenous) communities is therefore a fundamental part of our sustainability agenda and the promise of sustainable raw material procurement.

Affected communities in our main palm oil supply regions were identified as material. Pursuant to the ESRS definition, these are communities at one of the endpoints of the value chain (e.g., at the point of harvesting of commodities), and communities of indigenous peoples. Both groups are affected in Beiersdorf's main supply regions of Indonesia and Malaysia, but cannot be considered separately. The local communities comprise both indigenous peoples and non-indigenous peoples. They will be considered together in the following.

Beiersdorf has implemented various firmly established structures relating to due diligence and human rights requirements along the supply chain. Details are explained in the chapter "ESRS S2 - Workers in the value chain." The strategy development includes and assesses risks and impacts on affected communities.

A detailed overview of all identified impacts, risks, and opportunities and the methodology of the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

Policies Related to Affected Communities

One of our ambitions for responsible sourcing is to respect the human rights of indigenous communities. Our internal policies, the "Responsible Sourcing Policy" and "Sustainable Palm Policy," are in line with the relevant international frameworks, guidelines and standards. These include, amongst others, the principles of the United Nations Declaration on the Rights of Indigenous Peoples. We also commit ourselves and our business partners with our Sustainable Palm Policy to compliance with the principles of "Free, Prior, and Informed Consent" (FPIC) along our entire supply chain for palm oil-based raw materials. All of these internal policies include minimum standards for the recognition, protection and promotion of the rights of indigenous communities. These standards concern both individual and collective rights, as well as cultural rights and identity, the right to education, health, employment, language, equal rights, and effective participation in all matters affecting them.

In order to meet these obligations, we require all direct business partners to comply with our internal policies and their requirements in their own business activities and along their entire value chains.

[^0]
[^0]: ${ }^{10}$ No impacts, risks or opportunities were identified in this area for tesa, so the chapter "ESRS S3 - Affected Communities" relates solely to the Consumer Business Segment.

Engagement with affected communities is an important lever to ensure that our requirements for responsible conduct reflect their collective interests along the supply chains. Moreover, the only reliable way to assess compliance with these requirements is via close dialog with all parties involved.

Responsible Sourcing Policy

Beiersdorf sources and uses renewable raw and packaging materials in the further development of its recipes and products. This may result in negative impacts on affected communities, which we address through our "Responsible Sourcing Policy." This internal policy commits Beiersdorf to compliance with environmental, social, and ethical standards as well as legal regulations along the entire value chain. We want to strengthen the resilience of our supply chains, minimize negative impacts and promote positive effects for people and the environment. The overarching objective of the policy is to support our business partners in complying with the requirements and ensure responsible sourcing throughout the value chain. This includes the following:

• compliance with international, national, and local laws/requirements,
• respect for human rights for all people and groups along the supply chain,
• a halt to deforestation and conversion of natural ecosystems,
• mitigation and minimization of climate impacts, and
• continual and positive environmental and social improvements in key sourcing areas.

The scope of the "Responsible Sourcing Policy" includes in particular palm oil and its derivatives, soybean oil, coconut oil, and paper for primary packaging. It applies worldwide for all products manufactured by Beiersdorf and third party providers. The VP Corporate Sustainability as well as the VP Procurement are responsible for the implementation of the policy.

Sustainable Palm Policy

Palm kernel (oil) derivatives and fractions are important ingredients in Beiersdorf's skin care products. With the "Sustainable Palm Policy," we commit to sustainable and deforestation-free sourcing of palmbased raw materials. We aim to achieve the following overarching targets set out in the policy:

• sustainable sourcing of palm-based raw materials via supply chain certification by the "Roundtable on Sustainable Palm Oil" (RSPO),
• transparency and risk mitigation of our palm oil supply chain,
• support for smallholder farmers and landscape projects in the sourcing countries, and
• proactive cooperation with our key partners in the supply chain and in multi-stakeholder initiatives.

To this end, our policy sets out basic principles such as compliance with requirements, regulations, and principles relating to environmental and social matters. The policy also includes our "Sustainable Palm Roadmap" and sets out the specific steps towards sustainable sourcing.

Further information about the Sustainable Palm Policy can be found in the chapter "ESRS E4 Biodiversity."

Beiersdorf uses various implementation strategies to meet the specified obligations for responsible sourcing. We aim to ensure respect for human rights and consideration of the interests of all affected communities, including indigenous peoples. In addition to the measures described in the chapter "ESRS S2 - Workers in the Value Chain," we conduct an annual supply chain transparency analysis to understand the sourcing regions and land distribution of our core raw materials.

Processes for Engaging with Affected Communities

Beiersdorf has an effect in particular on communities and indigenous peoples living and working in the most important countries of origin of palm-based raw materials - albeit indirectly. This is because of the multi-tier supply chain between Beiersdorf, direct suppliers and the palm oil mills and plantations. Together with ASD, we were able to identify Indonesia and Malaysia as our main supply countries based on our annual transparency analysis. The results showed that we source $95 \%$ of our palm-based raw materials derivatives from Indonesia and Malaysia. A relatively large proportion of the populations of both countries are indigenous peoples (transparency analysis performed in 2024 with volumes from 2023).

Although Beiersdorf has not defined any strategic procedures for involving affected communities, it supported smallholder palm oil farmers in the identified main supply countries in the reporting year.

In Indonesia, Beiersdorf is collaborating with Evonik and the WWF to support approximately 350 smallholder palm oil farmers (as of November 2024) in the West Kalimantan province in the Indonesian part of Borneo. Beiersdorf supports the transition to sustainable management of oil palm trees according to RSPO criteria.

In Malaysia, we are also supporting a landscape project with our supplier Evonik and the WWF in Tabin, Sabah, in the Malaysian area of Borneo. The desired certification according to the RSPO standard and the establishment of an ecological corridor are intended to reduce conflict between humans and animals in the long term.

Beiersdorf supports both projects financially and is involved in decisions about the measures that the WWF implements in Indonesia and Malaysia in close cooperation with the respective target groups. All relevant target groups are consulted as part of an FPIC before the project starts. This included that the project idea and planned measures were discussed and coordinated with the small farmers. During the project implementation, WWF Indonesia and WWF Malaysia are in regular contact with the target groups and other relevant stakeholders.

The WWF reports on the progress of the projects, any delays, and if necessary adjustments to the activities. The effectiveness of the cooperation with smallholder farmers is measured using predefined metrics. The WWF's "Environmental and Social Safeguards Framework" provides an institutional mechanism to address the environmental and social risks associated with the work of the WWF, contributes to better nature conservation results, and improves the social well-being of local communities where the WWF is active. The project progress is reported annually to the Vice President Corporate Sustainability who is operationally responsible for including the findings of the projects in the business concept.

Channels for Affected Communities to Raise Concerns

We are actively committed to preventing or minimizing breaches of our standards of conduct and negative influences along our supply chain. Further information is provided in the chapters "ESRS S2 Workers in the Value Chain" and "ESRS G1 - Business conduct." This grievance channel is also available in the Bahasa Indonesia language for the affected communities in our main sourcing countries Indonesia and Malaysia; this language is spoken and understood in both Indonesia and Malaysia. The affected communities were not directly consulted in the process of establishing the channels. In the event of any negative impact on affected communities, a defined procedure for incident documenting and reviewing is applied by the Responsible Sourcing team and a collective complaints procedure is used in cooperation with the ASD.

Actions Related to Affected Communities

Joint projects with the WWF
Beiersdorf is working with the supplier Evonik and the WWF on the two projects in Indonesia and Malaysia described in the section "Channels for Affected Communities to raise Concerns." The actions and measures set out below are formally approved by Beiersdorf and Evonik and operationally implemented by the WWF.

Both projects address the material negative impact identified on the affected communities area. Through official legalization and subsequent certification of smallholder farmers' land areas in line with the RSPO standard, negative effects associated with the FPIC principles can be counteracted.

No serious problems or incidents concerning human rights relating to the affected communities were reported in the reporting year. Nor were there any significant negative impacts on the project villages, meaning that no specific remedial actions were necessary. Instead, preventive measures were implemented and further developed. The effectiveness of these measures is reviewed through regular dialog with the project managers.

WWF project in Indonesia

Description: The smallholder association "Asosiasi Mitra Bersama" (AMB) was formed in the West Kalimantan, Indonesia project area with the support of the WWF in the first phase of the project. WWF Indonesia has been and will continue conducting various activities to support the association and its members, including training on more sustainable farming methods, occupational health and safety, fire prevention and other topics. This has enabled the smallholder farmers to acquire knowledge and build capacity to operate their plantations more sustainably and in line with the RSPO requirements. AMB was certified in early 2024 with 201 members. The RSPO certification confirms that the smallholders operate their palm oil plantations more sustainably and with due consideration for occupational health and safety, respect for human rights, and environmental factors in line with the RSPO requirements.

Scope: Direct measures are aimed at a total of 350 smallholders who are being trained in sustainable production and receive support in the RSPO certification process.

Time horizon: The planned period for the measures extends from September 2018 to June 2025.

Expected outcome: The objective of the project (phase 2: 2022-2025) is to support at least 200 smallholder palm oil farmers in obtaining RSPO certification of their land and establishing direct market access to a mill.

WWF project in Malaysia

Description: WWF representatives hold regular meetings with the smallholder farmers in the project region of Tabin, Malaysia, to inform the communities about sustainable farming practices and the advantages of RSPO certification, and to offer support in the certification process. The WWF team and the affected communities also work together to support conflict avoidance between humans and animals exacerbated by palm oil plantations.

Scope: The project covers part of the Tabin region, Malaysia, and is aimed primarily at the communities of small and medium-sized farmers living there, who own a total cultivation area of around 15,000 hectares.

Time horizon: The planned period for the measures extends from September 2020 to October 2026.

Expected outcome: The aim is to have trained the small and medium-sized farmers in the project region in sustainable farming practices and to have helped them through the RSPO certification process by

1. The plan is to have a total of 15,000 hectares of cultivation area certified under the RSPO standard.

Transparency analysis of the palm (kernel) oil supply chain
Description: Beiersdorf aims to be able to trace the origin of its palm-based raw materials (palm and palm kernel oil and their derivatives) throughout the supply chain as far as refineries, mills and plantations. To achieve this transparency, Beiersdorf became a founding member of the cross-industry initiative "Action for Sustainable Derivatives" (ASD), which has been promoting transparency and sustainability in palm oil derivative supply chains since 2019. ASD obtains comprehensive information on the upstream supply chain through direct queries submitted to suppliers in order to achieve transparency along the entire palm oil supply chain.

Scope: This transparency analysis covers the entire palm-based raw material supply chain and includes all direct suppliers that supply Beiersdorf with palm and palm kernel oil-based raw materials. It includes all tiers, from refineries, through mills, right down to plantations, to provide in-depth knowledge of the supply chain structures and players.

Time horizon: The supply chain transparency analysis is performed once per year.
Expected outcome: The ASD initiative enables systematic tracing of the supply chain for palm and palm kernel oil, as well as its derivatives, in order to identify all actors down to the plantation level and create transparency across the entire supply chain. Beiersdorf was able to trace $98 \%$ of the production volume back to the level of refineries, $97 \%$ to mills, and $71 \%$ to plantations in the reporting year. This transparency in the supply chain as well as satellite monitoring of changes on lands in the main reference regions can directly address the actual occurrence of the impact identified as significantly negative for affected communities. Identifying individual actors allows Beiersdorf to take targeted measures to address violations of corporate requirements to protect communities.

Targets Related to Affected Communities

Although Beiersdorf has not defined strategic targets as regards affected communities, it measures the effectiveness and progress of its actions and projects using quantitative indicators.

Another of Beiersdorf's overarching targets is to source 100\% certified palm (kernel) oil-based raw materials. This target has been achieved in 2020, by purchasing palm (kernel) oil exclusively in accordance with the RSPO's "Mass Balance" model. By sourcing 100\% RSPO-certified goods, we also contribute to compliance with the FPIC principles, which form part of the RSPO principles and criteria.

ESRS S4 - Consumers and End-users

Material Impacts, Risks, and Opportunities

In the double materiality assessment, Beiersdorf has identified impacts, risks and opportunities in relation to the topic consumer health and safety. ${ }^{11}$ Firstly, potential negative impacts on consumers could occur. Even though our cosmetic, medical and medicinal products undergo extensive (dermatological) testing, we cannot guarantee that all products will be well-tolerated by every consumer. Using a product on the skin may cause reactions like irritant or allergic contact dermatitis.

We also identified a material risk concerning consumers and end-users. Selling products that are unsafe or fail to meet quality standards can lead to serious consequences, such as product recalls, financial losses from recall costs, product destruction, and potential legal actions. Additionally, it can damage the company's reputation.

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[^0]: ${ }^{11}$ No impacts, opportunities and risks were identified for tesa in this area, therefore the chapter "ESRS S4 - Consumers and Endusers" refers exclusively to the Consumer Business Segment.

Moreover, we have identified an opportunity in relation to consumers and end-users in our downstream value chain. Focusing on high-quality, safe, environmentally benign and health-promoting products, Beiersdorf can differentiate its brands in the market, build a loyal customer base, and credibly position itself as a leading company in the health-conscious cosmetic industry. Complementing the above mentioned opportunity, Beiersdorf has an identified positive impact on consumers we serve as our products contribute to preventing or treating skin diseases and injuries.

A detailed overview of all identified impacts, risks and opportunities and the methodology of the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

Policies Related to Consumers and End-Users

A team of experienced, highly qualified safety assessors and regulatory managers ensures that we meet both legal and our own requirements regarding the quality of our products as stipulated in relevant company policies. These policies provide an encompassing framework to manage our material impacts, risks and opportunities concerning consumers and end-users.

The team performs all legally required evaluations and approvals of our raw materials, formulas, packaging materials, and product claims to verify their safety and compatibility for consumers. Our safety assessors only approve finished cosmetic products for market release after evaluation in accordance with internationally recognized rules for safety assessment set out in the "EU Cosmetics Regulation 1223/2009" and the requirements of the "SCCS Notes of Guidance" in their 12th revision from 2023. The latter are published by the "Scientific Committee on Consumer Safety" (SCCS) and are applicable EU-wide.

Global Quality Policy

The "Global Quality Policy" outlines Beiersdorf's commitment to quality, regulatory compliance, and consumer satisfaction. This policy serves as a guiding principle for decision-making and setting quality objectives. Top management aims to ensure that the "Global Quality Policy":

• is applicable to the purpose of the organization including a commitment to maintaining the effectiveness of our quality management system (QMS),
• provides a framework for establishing and reviewing quality objectives, and
• is communicated and understood throughout the organization and included in the training of new employees on the QMS.

The policy serves to address and mitigate the material potential negative impact of consumer intolerance reactions or other complaints. It applies worldwide to all Beiersdorf products in the Consumer Business Segment and covers all Beiersdorf employees. The CEO is responsible for implementing the policy.

We monitor the effectiveness of the "Global Quality Policy" based on a set of QMS Key Performance Indicators (KPIs), defined and monitored by the Quality Leadership team. The goal is to allocate adequate resources to implement the "Global Quality Policy" and to establish adequate risk mitigation measures. The policy is made available to staff via the QMS.

The "Global Quality Policy" is aligned with international standards such as "ISO 22716 GMPs for Cosmetics," "ISO 13485 for Medical Devices," and "ICH Q10 for Medicinal Products." Stakeholder interests have been incorporated into the regulatory requirements referenced in the policy. Consumer expectations for product quality specifically have been considered in setting our quality objectives.

Abstract

Product Safety Policy for Cosmetic Products The "Product Safety Policy for Cosmetic Products" describes Beiersdorf's commitment that all cosmetic products placed on the market by the company are safe for our consumers. One single global product safety standard is defined and applied consistently across all regions. A thorough state-of-the-art assessment of raw materials, formulas, packaging and product presentation for their intended use is required prior to placing products on the market. Once products are on the market, post-market surveillance is required. The policy states that safety procedures should be regularly reviewed to keep them state-of-the-art.

The policy serves to address and mitigate the potential negative impact of consumer intolerance reactions. It applies globally and to all consumers of Beiersdorf (Consumer Business Segment) products and covers all Beiersdorf staff responsible for design, production and placing of products on the market. The Vice President Global Product Stewardship is responsible for implementing the directive; the R\&D Leadership Team is responsible for allocating adequate resources to implement the necessary activities and ensure adequate risk control.

The policy stipulates that all products must be approved prior to production. We monitor the policy's effectiveness with a set of KPIs for Quality Management, thus recording any exceptions or deviations, such as non-conformities, managed according to our QMS. Consumer complaint rates are also monitored for adverse reactions, which can trigger investigation and corrective actions.

Excerpts of the policy are publicly available on our website: www.beiersdorf.com/research/our-way-ofworking/secured-quality.

Stakeholder interests have been incorporated into the regulatory requirements that the policy references.

Raw Materials Policy

The "Raw Materials Policy" establishes that Beiersdorf develops, manufactures and markets our products in accordance with principles that aims to ensure consumers' safety and promote well-being. The policy specifies that materials need to have passed through a multi-stage selection process involving our experts in a number of specialist functions. Specifically:

• Raw materials must meet stringent quality criteria, which we continuously update to comply with the latest regulations and international directives.
• Toxicologists thoroughly check each raw material; all available information regarding characteristics that could result in potential health risks are included in this process.
• Raw materials should be tested in vitro if required, using all relevant test procedures (e.g. cell cultures to obtain additional findings about interactions with living systems).
• Skin compatibility of raw materials in product applications is tested using volunteers.

The "Raw Materials Policy" serves as an initial measure to both address and mitigate the material potential negative impacts of consumer intolerance reactions, while contributing to the opportunity of promoting consumers' health and well-being.

We monitor the effectiveness of this policy by carefully analyzing communication with our consumers. We identify potential improvements to our products as early as possible and incorporate these findings into product development. We analyze new findings and pointers from scientific literature, the media and interest groups for their relevance to our safety assessment. If such data leads to a reassessment of a material, the necessary measures are implemented within an appropriate time frame. The potential consequences range from immediately discontinuing use and recalling affected products to replacing materials with more suitable options over a longer period.

The policy applies globally to all consumers of Beiersdorf products and covers all Beiersdorf staff responsible for design and formulation of our products. The Vice President Sustainability is responsible for implementing the directive.

The "Raw Materials Policy" is publicly available on our website: www.beiersdorf.com/ /media/ Beiersdorf/sustainability/archive/products/raw-materials/raw-materials-policy.pdf.

Processes for Engaging with Consumers and End-Users

As a global skin care company, Beiersdorf embraces the responsibility of contributing to the health and well-being of our consumers though our products for cosmetic, medical skin care and therapeutic applications. This means being in touch with our consumers and end-users to understand current and future needs, ensuring our products meet or exceed expectations, and promoting holistic approaches to skin care and healthy skin.

At our research center in Hamburg as well as in our global regions, we regularly talk to consumers, conduct studies and surveys, observe usage habits and inquire on expectations. By staying close to our consumers, we can glean valuable information about how we can improve our products and packaging and how our products can be designed for quality, effectiveness, tactility, ease and pleasure of use.

Trained employees and external subjects take part in highly standardized testing procedures and descriptive panels in which they analyze and describe the properties of creams and lotions during and after application, focusing on characteristics like solidity, spreadability, moisture content and feeling on the skin.

We strive to keep abreast of the latest research and maintain an in-depth dialogue with the scientific community, government authorities and public organizations. Our relationships with product safety and environmental interest groups are just as important. They allow us to actively participate in discussions on critical issues.

Beiersdorf scientists publish findings on skin research in peer reviewed journals, as listed on our website. We engage with experts and host events with dermatologists and other specialists to promote skin health. Beiersdorf sponsors institutions whose aims include disseminating information on dermatological science, such as the German "Information Network of Departments of Dermatology" (IVDK). Research partnerships, like our collaboration with the "German Cancer Research Center" (DKFZ), cover important and diverse fields of consumer health. We actively participate in industry associations such as "Cosmetics Europe" (CE) to promote responsible product care. Additionally, we contribute significantly to international initiatives for consumer safety, e.g. the "International Collaboration on Cosmetics Safety" (ICCS).

Product information is made available to consumers through various channels, including social media, product labels, and information leaflets. This information includes claims, product composition, usage directions, and/or warnings.

Consumers and end-users can enquire on products through the contact details provided with the products and through our brands websites. Our Sales teams also offer information regarding the beneficial and appropriate use of our products. For specific product types and applications, supporting information is made available on our website or directly to pharmacies, for example in the form of "Frequently Asked Questions" (FAQs). On the Beiersdorf websites, we share information that is specifically relevant to our consumers and related positive and negative impacts on their health and well-being. This includes, for example, our company's approach to ingredients, and the NIVEA pages present detailed information on the ingredients used in our products.

Channels for Consumers and End-Users to Raise Concerns

Consumer and customer satisfaction is the basis of our business success. Consumers in all our markets around the world can reach us directly via various communication channels such as social media, email, and telephone hotlines. Under the responsibility of the Vice President Global Quality Management, a global network of "Consumer Interaction" managers ensures that our uniformly high quality standards for contact with consumers are maintained in the respective market. In addition, we evaluate worldwide complaints centrally, analyze their causes, and implement optimization measures. Consumers and endusers can also report any complaints or concerns via our whistleblowing system. Details are described in chapter "ESRS G1 - Business conduct."

Consumer complaints, including any adverse health reactions, are monitored and evaluated to identify and respond to any potential concerns in quality or product safety. This is required under relevant "Standard Operating Procedures" (SOPs) and Quality Manuals.

In the case of a quality defect or a consumer health complaint, our global network of Quality Managers and our international Complaints Management organization analyze the case and initiate necessary measures for rapid adjustment. Our critical complaints and issues management includes handling adverse reactions. The Quality Management team is responsible for evaluating complaints and managing product safety implications according to the corresponding SOP.

All consumer complaints are monitored and compared with baseline rates. Trend analyses are also performed to ensure there are no significant negative impacts on consumers. Complaint patterns with high numbers of undesirable effects or untypical types of adverse reactions immediately trigger an investigation and any necessary corrective and/or preventative actions. Any potential serious undesirable effect is evaluated on a case-by-case basis to ensure that safety measures are in place to protect consumer health.

Data and incidents are summarized in our monthly "Consumer Complaints and Post Launch Surveillance Report." 2023 serves the baseline for our post-market surveillance data. In addition, we conduct industry data benchmarking through the IVDK. These measures to monitor complaints, incidents and related processes are directly aligned with the Beiersdorf policies directly relevant to our material impacts, risk and opportunity concerning consumers and end-users. Specifically, these include our "Global Quality Policy," "Product Safety Policy for Cosmetic Products," and "Raw Materials Policy."

Consumer and end-user issues can be escalated and trigger further actions by our Quality Management team in accordance with our "Crisis Management Manual." The Crisis Management team directly informs our CEO and Executive Board of any critical issues. Any legal reporting obligations in the event of serious incidents are always taken into account and, if necessary, implemented in a timely manner.

Actions Related to Consumers and End-Users

A range of procedures address and mitigate risks and negative impacts while promoting positive outcomes for our consumers and end-users. The procedures described above are part of a structured decision-making process that ensures that all identified negative impacts are systematically assessed and addressed with suitable measures.

In addition to the actions described below that promote the safety and tolerability of our products, Beiersdorf takes actions that are primarily intended to make a positive contribution to the health and well-being of consumers. Our brands NIVEA, Eucerin, Hansaplast, Elastoplast and Curitas implement local projects that are tailored to the needs and concerns of their consumers. These "Brand Social Missions" aim to strengthen individual health, enable better social connections and promote fairer societies.

Corrective actions for existing products
Description: For existing products, corrective actions for identified negative impacts or material potential negative impacts on consumer experiences and intolerance reactions are evaluated and managed through a corrective action and prevention plan. This plan follows the process for managing non-conformities, such as described in our SOP for "Non-conformity Management." Managing product recalls, if necessary, are described in our SOP "Product Recall from Consumers." Corresponding change management and risk mitigation procedures are documented according to our SOPs for "Change Management" and Quality Manuals.

Scope: Global
Time horizon: Ongoing
Expected outcome: Any identified or potential negative impacts, such as product intolerance or dissatisfaction, are promptly addressed and mitigated through corrective actions, ensuring product safety, quality, and satisfaction. If necessary, affected products may be recalled, and improvements implemented to prevent similar issues in the future.

Risk assessment and innovation management
Description: Risk assessment and risk management processes, including the pursuit of relevant opportunities, are embedded in all projects as described in our "Integrated Innovation Management" process. As part of this process, new products and technologies are developed to treat injured skin, further promote healthy skin and advance skin care.

Scope: Global
Time horizon: Ongoing
Expected outcome: The expected outcome of this action is the development of innovative products and technologies that enhance skin health and advance skin care, ensuring consumers benefit from safer, more effective, and forward-thinking solutions tailored to their needs.

Safety assessments

Description: In the interests of consumer protection, our safety assessors work closely with relevant departments such as R\&D and Product and Packaging Development. In addition to experience and expertise, evaluating the safety of cosmetic and medical products requires, above all, scientific exchange and knowledge of new findings regarding the compatibility and safety of raw materials, formulas, and packaging materials, as well as compliance with legal and regulatory standards, with consideration to state-of-the-art. Accordingly, our safety assessors attend international conferences, participate in working groups and expert teams, and also take part in specialist international training courses.

Scope: Global
Time horizon: Ongoing
Expected outcome: The goal of this professional exchange and training is to ensure that we continue to operate appropriately and responsibly in the future. It is also important to us that we hold our external service providers and suppliers, such as raw material manufacturers, accountable. They must certify compliance with statutory requirements as well as with Beiersdorf-specific requirements that go beyond the legally required scope.

Targets Related to Consumers and End-Users

Consumer health and safety targets and benchmarks are managed internally as they are based on sensitive information such as market data and formulation performance. Without comparable data in standardized reporting formats, such as deviations or complaint rates, external publication is of little relevance. Beiersdorf therefore does not publish any specific targets in this area, but reports on all cases of non-compliance.

Our commitment to consumer health and safety is reflected in the implementation of strict processes and standards. Beiersdorf monitors the effectiveness of the measures through three central processes:

1. The technical approval of all raw materials and end products.
2. Compliance with regulatory requirements with the goal of full conformity.
3. Ensuring excellent skin compatibility through comprehensive testing and market monitoring.

Product safety is ensured through compliance with international regulations such as the "EU Cosmetics Regulation 1223/2009," and" EU Medical Device Regulation 2017/745" as well as adherence to internal policies such as the "Global Quality Policy" and the "Product Safety Policy." Product safety is further guaranteed through strict monitoring of raw materials, formulations, and manufacturing processes, which adhere to internationally recognized standards such as "ISO 22716 for cosmetics" and "ISO 13485 for medical devices." By firmly embedding product safety into its processes, Beiersdorf achieves its objectives and systematically develops its measures.

At the same time, these approaches play a crucial role in Beiersdorf's product innovations and market success. They are closely linked to the goals and measures of our R\&D department. From 2025 we are planning more transparency, for example through the "EcoBeautyScore" initiative. This is intended to help consumers make informed and sustainable decisions when selecting cosmetic products.

Governance Information

ESRS G1 - Business Conduct

Material Impacts, Risks, and Opportunities

As a global company with complex value chains, Beiersdorf bears a high level of corporate responsibility and is obliged to comply with various legal provisions and other regulations. Guidelines such as our Code of Conduct (CoC) reflect the principles and values of our corporate culture and help us to fulfill our obligations; we have therefore identified a positive impact in this context as part of our materiality assessment. Our Group-wide compliance management systems (CMS) in the Consumer and tesa Business Segments, which have also implemented targeted programs for the prevention and detection of corruption and bribery in particular, are likewise contributing to this positive impact. However, there are still risks associated with potentially inadequate investigations into corruption, which can have a financial and reputational impact as a consequence of instances of corruption. As a further component of our CMS, we have implemented various reporting systems and channels which, in conjunction with the protection of whistleblowers, represent an additional positive impact in the context of the materiality assessment. We explain how we deal with these material impacts and risks below.

A detailed overview of all impacts, risks, and opportunities identified and the methodology used for the double materiality assessment can be found in the chapter "ESRS 2 - General Disclosures."

Corporate Culture and Guidelines for Business Conduct

The core values of the Consumer Business Segment are Care, Trust, Simplicity, and Courage. They are intended to serve as a daily benchmark for ensuring that we always communicate and act consistently across our business areas. tesa's core principles include Respect, Honesty, Trust, Tolerance and Integrity.

These corporate values are reflected in our CoCs as well as in key guidelines that provide further detail on the requirements of the CoCs. The Consumer and tesa CoCs have been drawn up in cooperation and consultation with all the main functions and are binding Group-wide for all companies in the Consumer and tesa Business Segments.

Consumer

Code of Conduct for Employees
The Consumer CoC for Employees translates our values into standards and ethical principles. Since Beiersdorf AG is a member of the UN Global Compact network, significant elements are also derived from the ten principles of the UN Global Compact. The Consumer CoC is intended to create a common basis for our daily activities that summarizes, explains, and codifies the key provisions and requirements of the corporate functions relevant to Beiersdorf with binding effect. Principles of conduct in the following areas are defined in the Consumer CoC:

• Core principles (e.g. product safety, free competition, and anti-corruption)
• Working environment (health and safety at work, diversity and inclusion)
• Conflicts of interest, gifts, and invitations
• Handling information, resources and financial issues
• Society and the community
• Compliance with the principles and reporting of compliance violations (including strictly confidential handling, see page 33 in the Consumer CoC)

The Consumer CoC addresses corruption, corporate culture, and whistleblower protection, which have been identified as material topics.

All managers are responsible for implementing the Consumer CoC in the company and monitoring compliance with it. As part of their management duties, they must guard against unacceptable behavior and take appropriate measures to prevent breaches of the rules in their area of responsibility. In addition, all employees receive regular training on the content of the Consumer CoC in the form of elearning courses. The Corporate Compliance Management and Corporate Auditing functions and local Compliance Officers continuously monitor compliance with the Consumer CoC and follow up on any breaches. Deliberate breaches of the guidelines have consequences under labor law within the framework of the applicable regulations.

The Consumer CoC is binding for all managers and employees in the Consumer Business Segment across all levels and in all of our affiliates worldwide.

The Corporate Compliance Management function has a governance role with regard to the Consumer CoC, i.e. it is responsible for regularly updating and implementing the Consumer CoC in our affiliates. The Consumer CoC is the fundamental responsibility of the Executive Board, which is regularly briefed on compliance with the CoC as part of the annual compliance reporting. The Supervisory Board, as the controlling body, is also informed about the results of Compliance reporting.

The CoC was developed in close cooperation and coordination with the key functions responsible for the individual subject areas of the CoC. If the CoC is updated, the works council is informed in accordance with its function.

The CoC is available on the company's intranet and publicly on the company's website and is therefore freely accessible to all employees.

TESS

Code of Conduct

The tesa CoC is our shared frame of reference for all key questions relating to business ethics and our behavioral guide when making decisions in our day-to-day work. It sets a standard for all of us, and for our interactions with each other within the company as well as with the outside world. It is a promise to our customers, business partners and the public that we will behave responsibly.

The tesa CoC addresses corruption, corporate culture, and whistleblower protection (for whistleblower protection see page 19 of the tesa CoC ), which have been identified as material topics.

All managers are responsible for implementing the CoC within the company and monitoring compliance with it. As part of their management duties, they must guard against unacceptable behavior and take appropriate measures to prevent breaches of the rules in their area of responsibility.

The tesa CoC is derived in part from the ten principles of the UN Global Compact and serves as an overarching, binding guide to behavior. It applies worldwide and to all board members, managing directors, managers, and employees.

Corporate HR Management holds governance responsibility for the tesa CoC, which includes ensuring that it is regularly updated in coordination with the key functions responsible for each of the CoC's subject areas. The Executive Board is briefed on compliance with the CoC as part of the annual compliance reporting. The Supervisory Board, as the controlling body, is also informed of the results of Compliance reporting.

Corporate management attaches great importance to ensuring that the CoC is easily accessible and that its principles and ethical values are made available to all company employees on a regular basis and in an appropriate manner.

Other guidelines as part of our CMS

In addition to the CoCs, as part of our compliance programs, we have implemented, among other things, company-wide, uniform guidelines on antitrust law, on data protection with regard to the principles of the European General Data Protection Regulation (GDPR), and on the prevention of corruption.

The Consumer and tesa antitrust guidelines contain clear instructions on behavior in accordance with antitrust law, guidelines for contacting and exchanging information with competing companies, information on communication with customers, for example in connection with sales prices, and basic dos and don'ts.

The Consumer and tesa data protection guidelines describe in particular how the principles of the European General Data Protection Regulation (GDPR) are implemented for the lawful processing of data in our EU companies. They also provide employees with assistance and instructions on how to handle data.

The Consumer and tesa anti-corruption guidelines provide guidance for our employees on how to deal with gifts, product samples, and invitations from and to representatives and employees of other companies and public officials. They also contain information on how to deal with conflicts of interest.

As with the CoCs, it is the responsibility of managers to implement the guidelines in the company and monitor compliance. They receive significant support in this regard from the Compliance Officers in the regions and subsidiaries.

We also underscore our aspirations and minimum standards through our membership of recognized initiatives and associations. Beiersdorf AG and tesa SE are both members of the United Nations Global Compact, for example, and both are committed to the core labor standards of the International Labor Organization (ILO).

Group-wide CMS

Consumer and tesa each have their own, closely coordinated CMS. The CMS of each Business Segment is based on established international standards such as IDW PS 980, the CMS auditing standard. The aim of our CMS is to comply with essential legal provisions and internal guidelines in all countries in which Beiersdorf operates. The tasks of our CMS include the structured implementation of key compliance programs throughout the entire organization and, in particular, the prompt identification and management of relevant compliance risks.

We are guided by the following principles:

• Prevent: We incorporate pre-emptive measures in our management system to prevent wrongful conduct. This includes, for example, our CoC, other guidelines, as well as communication and training measures.
• Detect: We carry out annual risk analyses both centrally and locally in our affiliates in order to identify significant compliance risks across the Group at an early stage.
• React and improve: We present the results from the risk analyses to the Executive Board and use them to continuously adapt and improve our global and local compliance programs. We penalize any violations of legal or internal requirements as appropriate in each individual case. In addition, we continuously develop improvement measures for the entire CMS.

Locally responsible compliance officers in the regions and affiliates communicate the components of the compliance programs to our employees and play a fundamental role in their local implementation. The aim of this is to ensure that all elements of our CMS are firmly established at our sites around the world and are continuously monitored and improved.

Group-wide whistleblower and reporting systems

As part of their CMS, Consumer and tesa have set up and communicated various reporting systems and channels. These can be used to record any breaches of conduct that are unlawful or in conflict with internal company guidelines - anonymously if preferred. Guidelines and procedural guides, for example on whistleblowing, case management, and ad hoc reports, have been implemented.

The Consumer Business Segment has the "Speak up. We care." platform, while tesa uses a whistleblower platform called "Your voice - Our bond." Both platforms are provided by the same system provider and can be used anywhere in the world at any time. They are available in various languages and can be used by our own employees as well as customers, consumers, suppliers, and other stakeholders. Possible misconduct that can be reported includes incidents relating to company policy, human rights violations, and cases of corruption or bribery. Information on how to submit complaints and how they are processed is publicly available on the respective company website,

on the company intranet and on the homepage of the whistleblower platforms. There are also other internal reporting options for our employees, such as central compliance hotlines and email addresses. We regularly inform our employees about the various reporting systems and channels as part of compliance training.

Taking into account the Directive (EU) 2019/1937 on protection for whistleblowers, we have established processes for responding promptly to any reports received. Access to and processing of reports is systemically restricted to a small number of employees in the Corporate Compliance departments, Corporate Audit and corresponding experts (referred to as "case managers") from the relevant internal departments. The latter only have access to reports that fall within their respective areas of responsibility. Processing is based on internal procedures, standards, and the German Whistleblower Protection Act (HinSchG). This obliges "case managers" and other persons entrusted with investigating the report to handle information and investigative measures confidentially and independently. Any conflicts of interest in dealing with the whistleblower, the complaint, or the investigative measures must be promptly identified and managed. We treat the identity of whistleblowers as strictly confidential throughout the entire procedure, not least in order to protect them from possible retaliation. Their identity may only be disclosed to the extent that it is absolutely necessary for a possible investigation and criminal prosecution or as required by applicable law. The same applies to the identification and treatment of any accused person and any other individuals involved.

The Consumer Business Segment continually monitors the effectiveness of its whistleblower system. To do this, comparisons of the reports received are made with the results of other companies of similar size to ensure that the system is used appropriately. As part of a survey on compliance culture in 2024, we also surveyed the extent to which employees are aware of whistleblowing channels. The predominantly positive feedback shows that the channels are known to employees and are perceived as trustworthy. As part of external communications, we have taken measures to ensure that whistleblowing channels are easily accessible worldwide. The overhaul of the country websites ensures that all relevant stakeholders have easy access to the channels. These measures ensure that not only employees, but also external stakeholders such as workers in the value chain, consumers, and affected communities have access to and can trust the whistleblower system.

Compliance training

A key component of our CMS is a risk-oriented training concept for specific target groups with elearning and face-to-face training on individual compliance topics. As part of this, we have defined a uniform, global training procedure that has been agreed with the responsible Executive Board member and implemented in all of our affiliates.

Training on the CoCs for the Consumer and tesa Business Segments takes place every two years (tesa) and every four years (Consumer), and is mandatory for all employees worldwide. The topics covered include business conduct, personal integrity, the handling of company resources, information and data, and how to proceed in the event of any breaches.

Training courses on the prevention of corruption, antitrust law and data privacy are also held every two years for both Business Segments.

In the Consumer Business Segment, the courses are aimed at all employees worldwide or, in the case of data privacy, EU-wide (with the exception of production employees). Employees also receive additional, in-depth training if they are exposed to increased risk in their roles or activities in the respective areas. When it comes to preventing corruption, this applies in particular to employees in the sales, marketing, purchasing, and management functions.

At tesa, training is provided for all employees with increased risk. This means that, similarly to Consumer, corruption prevention training is mainly targeted at employees in the sales, purchasing, and management functions. Further training is provided as required.

Consumer and tesa have defined an annual participation rate of at least $95 \%$ worldwide for all of the above-mentioned compliance training courses, measured in terms of the annual target group for the various key compliance training areas. The achievement of this target is part of the annual reporting to the Executive and Supervisory Boards. In 2024, the actual participation rate was $92 \%$ for the Consumer Business Segment and 99\% for tesa. The participation rate includes the subsidiaries of La Prairie and Chantecaille.

In addition to the training courses, we regularly inform our employees about relevant compliance topics and new developments through a variety of communication channels such as the intranet and emails. We are also in regular contact with our local affiliates, for example to discuss relevant updates, any issues that arise, and best practice approaches.

Prevention and Detection of Corruption and Bribery

Consumer and tesa aim to prevent corruption and bribery and address incidents in this regard using the CMS described above and the associated guidelines, procedures (e.g. relating to reporting channels), and actions.

As already mentioned, our mandatory training courses are subject to clear, globally applicable requirements on anti-corruption, which are monitored locally by the established compliance networks and centrally by the Corporate Compliance departments. These departments are also tasked with ensuring that the defined training metrics are achieved, and will apply the necessary escalation measures if not enough training courses are completed. The Executive and Supervisory Boards are also informed about corruption and bribery as required.

Any incidents of corruption or bribery reported via the systems described above that are substantial and require sanctions are referred to the relevant management team and, if applicable, to a member of the Executive Board.

Local Compliance Officers and the Corporate Compliance departments are the points of contact for employees with any questions on corruption and bribery.

Incidents of Corruption or Bribery

Reports and incidents of corruption or bribery in the reporting period are recorded and evaluated via the existing reporting systems, as described above (see "Corporate culture and guidelines for business conduct" and "Prevention and detection of corruption and bribery").

This includes all reported and confirmed incidents of corruption or bribery in direct connection with Beiersdorf AG (including affiliates with a majority shareholding) and/or its employees that have led to a legally binding judgment. If this results in fines, these are shown as the total of all legally binding fines that a Beiersdorf AG company had to pay due to violations of anti-corruption laws and/or anti-bribery laws. Our reporting systems as described above form the basis for determining whether any incidents of corruption or bribery occurred during the reporting period, and if so, what fines were imposed.

There were no convictions or fines in connection with corruption and bribery offences at Beiersdorf in the reporting period.

We always investigate all reports of corruption and bribery received via our reporting systems, clarify the relevant facts, and, after careful consideration, take appropriate action. Depending on the circumstances, this may include disciplinary or communicative measures as well as adjustments to internal processes.

Annex

A. Disclosure Requirements in ESRS Covered by the Company's Non-Financial Statement

Standard	Disclosure requirement	In accordance with ESRS	Page
General information
	BP-1 - General basis for preparation of Non-financial Statement	yes	p. 41
	BP-2 - Disclosures in relation to specific circumstances	yes	p. 42
	GOV-1 - The role of the administrative, management and supervisory bodies	yes	p. 42
	GOV-2- Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	yes	p. 46
	GOV-3 - Integration of sustainability-related performance in incentive schemes	yes	p. 46
	GOV-4 - Statement on due diligence	yes	p. 176
	GOV-5 - Risk management and internal controls over sustainability reporting	yes	p. 47
	SBM-1 - Strategy, business model and value chain	yes	p. 47
	SBM-2 - Interests and views of stakeholders	yes	p. 51
	SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	yes	p. 53
	IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities	yes	p. 158
	IRO-2 - Disclosure requirements in ESRS covered by the undertaking's Non-financial Statement	yes	p. 167
	List of datapoints in cross-cutting and topical standards that derive from other EU legislation	yes	p. 171

Standard	Disclosure requirement	In accordance with ESRS	Page
Environmental information
ESRS E1 Climate change	GOV-3 - Integration of sustainability-related performance in incentive schemes	yes	p. 46
	E1-1 - Transition plan for climate change mitigation	no	p. 61
	SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	no	p. 53
	IRO-1 - Description of the processes to identify and assess material climate-related impacts, risks and opportunities	no	p. 58
	E1-2 - Policies related to climate change mitigation and adaptation	yes	p. 62
	E1-3 - Actions and resources in relation to climate change policies	no	p. 63
	E1-4 - Targets related to climate change mitigation and adaptation	no	p. 67
	E1-5 - Energy consumption and mix	no	p. 71
	E1-6 - Gross Scopes 1, 2, 3 and Total GHG emissions	no	p. 75
ESRS E2 Pollution	IRO-1 - Description of the processes to identify and assess material pollution-related impacts, risks and opportunities	yes	p. 58
	E2-1 - Policies related to pollution	yes	p. 76
	E2-2 - Actions and resources related to pollution	no	p. 78
	E2-3 - Targets related to pollution	yes	p. 80
	IRO-1 - Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities	yes	p. 58
ESRS E3 Water	E3-1 - Policies related to water and marine resources	yes	p. 82
	E3-2 - Actions and resources related to water and marine resources	no	p. 83
	E3-3 - Targets related to water and marine resources	no	p. 85
	E3-4 - Water consumption	no	p. 86
	SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	yes	p. 53
	IRO-1 - Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities	yes	p. 58
	E4-2 - Policies related to biodiversity and ecosystems	yes	p. 87
	E4-3 - Actions and resources related to biodiversity and ecosystems	no	p. 89
	E4-4 - Targets related to biodiversity and ecosystems	yes	p. 91
	IRO-1 - Description of the processes to identify and assess material resource use and circular economy-related impacts,risks and opportunities	yes	p. 58
ESRS E5 Resource use and circular economy	E5-1 - Policies related to resource use and circular economy	yes	p. 92
	E5-2 - Actions and resources related to resource use and circular economy	no	p. 93
	E5-3 - Targets related to resource use and circular economy.	no	p. 94
	E5-4 - Resource inflows	no	p. 96
	E5-5 - Resource outflows	no	p. 96

Standard	Disclosure requirement	In accordance with ESRS	Page
Social information
	SBM-2 - Interests and views of stakeholders	yes	p. 51
	SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	no	p. 111
	S1-1 - Policies related to own workforce	no	p. 111
	S1-2 - Processes for engaging with own workers and workers' representatives about impacts	yes	p. 115
	S1-3 - Processes to remediate negative impacts and channels for own workers to raise concerns	no	p. 117
ESRS S1 Own workforce	S1-4 - Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	no	p. 117
	S1-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	no	p. 132
	S1-6 - Characteristics of the undertaking's employees	no	p. 137
	S1-9 - Diversity metrics	no	p. 138
	S1-14 - Health and safety metrics	no	p. 138
	S1-16 - Compensation metrics (pay gap and total compensation)	no	p. 139
	SBM-2 - Interests and views of stakeholders	yes	p. 51
	SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	no	p. 140
	S2-1 - Policies related to value chain workers	yes	p. 141
	S2-2 - Processes for engaging with value chain workers about impacts	yes	p. 143
ESRS S2 Workers in the value chain	S2-3 - Processes to remediate negative impacts and channels for value chain workers to raise concerns	no	p. 144
	S2-4 - Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions	yes	p. 145
	S2-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	yes	p. 149

	SBM-2 - Interests and views of stakeholders	yes	p. 51
	SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	yes	p. 151
	S3-1 - Policies related to affected communities	yes	p. 151
	S3-2 - Processes for engaging with affected communities about impacts	yes	p. 153
ESRS S3 Affected communities	S3-3 - Processes to remediate negative impacts and channels for affected communities to raise concerns	yes	p. 153
	S3-4 - Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions	yes	p. 154
	S3-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	yes	p. 155
	SBM-2 - Interests and views of stakeholders	yes	p. 51
	SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	no	p. 155
	S4-1 - Policies related to consumers and end-users	yes	p. 156
	S4-2 - Processes for engaging with consumers and endusers about impacts	yes	p. 158
	S4-3 - Processes to remediate negative impacts and channels for consumers and end-users to raise concerns	yes	p. 159
	S4-4 - Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions	no	p. 159
	S4-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	yes	p. 161

Standard				In accordance with
Governance information					ESRS	Page
ESRS G1 Business conduct		GOV-1 - The role of the administrative, supervisory and management bodies		yes		p. 42
		IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities		yes		p. 58
		G1-1- Corporate culture and Business conduct policies and corporate culture		yes		p. 162
		G1-3 - Prevention and detection of corruption and bribery		no		p. 166
		G1-4 - Confirmed incidents of corruption or bribery		yes		p. 166

B. List of Datapoints in Cross-Cutting and Topical Standards that derive from other EU Legislation

Disclosure Requirement	Datapoint	Name	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Page
ESRS 2 GOV-1	21 d	Board's gender diversity	Indicator number 13 of Table #1 of Annex 1		Commission Delegated Regulation (EU) 2020/1816, Annex II		p. 43
ESRS 2 GOV-1	21 e	Percentage of board members who are independent			Delegated Regulation (EU) 2020/1816, Annex II		p. 43
ESRS 2 GOV-4	30	Statement on due diligence	Indicator number 10 Table #3 of Annex 1				p. 181
ESRS 2 SBM-1	40 d i.	Involvement in activities related to fossil fuel activities	Indicators number 4 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk	Delegated Regulation (EU) 2020/1816, Annex II		p. 48
ESRS 2 SBM-1	40 d ii.	Involvement in activities related to chemical production	Indicator number 9 Table #2 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		p. 48
ESRS 2 SBM-1	40 d iii.	Involvement in activities related to controversial weapons	Indicator number 14 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		p. 48
ESRS 2 SBM-1	40 d iv.	Involvement in activities related to cultivation and production of tobacco			Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		p. 48
ESRS E1-1	14	Transition plan to reach climate neutrality by 2050				Regulation (EU) 2021/1119, Article 2(1)	p. 63

Disclosure Requirement	Data- point	Name	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Page
ESRS E1-1	16 g	Undertakings excluded from Paris-aligned benchmarks		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2		p.63
ESRS E1-4	34	GHG emission reduction targets	Indicator number 4 Table #2 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 6		p. 69
ESRS E1-5	38	Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)	Indicator number 5 Table #1 and Indicator number 5 Table #2 of Annex 1				p. 69
ESRS E1-5	37	Energy consumption and mix	Indicator number 5 Table #1 of Annex 1				p. 72
ESRS E1-5	$40-43$	Energy intensity associated with activities in high climate impact sectors	Indicator number 6 Table #1 of Annex 1				Not reported
ESRS E1-6	44	Gross Scope 1, 2, 3 and Total GHG emissions	Indicators number 1 and 2 Table #1 of Annex 1	Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1)		p. 76
ESRS E1-6	$53-55$	Gross GHG emissions intensity	Indicators number 3 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 8(1)		Not reported

Disclosure Requirement	Datapoint	Name	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Page
ESRS E1-7	56	GHG removals and carbon credits				Regulation (EU) 2021/1119, Article 2(1)	Not reported
ESRS E1-9	66	Exposure of the benchmark portfolio to climaterelated physical risks			Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II		Phase-in
ESRS E1-9	$66 \mathrm{a} \&$ c	Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) \& Location of significant assets at material physical risk paragraph 66 (c)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book climate change physical risk: Exposures subject to physical risk.			Phase-in
ESRS E1-9	$67 c$ c	Breakdown of the carrying value of its real estate assets by energy-efficiency classes		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2: Banking book climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral			Phase-in
ESRS E1-9	69	Degree of exposure of the portfolio to climaterelated opportunities			Delegated Regulation (EU) 2020/1818, Annex II		Phase-in
ESRS E2-4	28	Amount of each pollutant listed in Annex II of the E: PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil	Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1				not material
ESRS E3-1	9	Water and marine resources	Indicator number 7 Table #2 of Annex 1				p. 83
ESRS E3-1	13	Dedicated policy paragraph	Indicator number 8 Table 2 of Annex 1				p. 83
ESRS E3-1	14	Sustainable oceans and seas	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E3-4	28 c	Total water recycled and reused	Indicator number 6.2 Table #2 of Annex 1				p. 88
ESRS E3-4	29	Total water consumption in $\mathrm{m}^{3}$ per net revenue on own operations	Indicator number 6.1 Table #2 of Annex 1				Not reported
$\begin{aligned} & \text { ESRS 2 - } \ & \text { SBM-3 - E4 } \end{aligned}$	16 a i.		Indicator number 7 Table #1 of Annex 1				p. 89

Disclosure Requirement	Datapoint	Name	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Page
ESRS 2 - SBM-3 - E4	16 b		Indicator number 10 Table #2 of Annex 1				p. 89
ESRS 2 - SBM-3 - E4	16 c		Indicator number 14 Table #2 of Annex 1				p. 89
ESRS E4-2	24 b	Sustainable land/ agriculture practices or policies	Indicator number 11 Table #2 of Annex 1				p. 89
ESRS E4-2	24 c	Sustainable oceans/ seas practices or policies	Indicator number 12 Table #2 of Annex 1				Not material
ESRS E4-2	24 d	Policies to address deforestation	Indicator number 15 Table #2 of Annex 1				p. 91
ESRS E5-5	37 d	Non-recycled waste	Indicator number 13 Table #2 of Annex 1				not material
ESRS E5-5	39	Hazardous waste and radioactive waste	Indicator number 9 Table #1 of Annex 1				not material
ESRS 2 SBM3 - S1	14 f	Risk of incidents of forced labour	Indicator number 13 Table #3 of Annex I				p. 115
ESRS 2 SBM3 - S1	14 g	Risk of incidents of child labour	Indicator number 12 Table #3 of Annex I				p. 115
ESRS S1-1	20	Human rights policy commitments	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I				p. 115
ESRS S1-1	21	Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions			Delegated Regulation (EU) 2020/1816, Annex II		p. 115
ESRS S1-1	22	processes and measures for preventing trafficking in human beings	Indicator number 11 Table #3 of Annex I				p. 115
ESRS S1-1	23	workplace accident prevention policy or management system	Indicator number 1 Table #3 of Annex I				p. 116
ESRS S1-3	32 c	grievance/ complaints handling mechanisms	Indicator number 5 Table #3 of Annex I				p. 121
ESRS S1-14	88 b \& c	Number of fatalities and number and rate of work-related accidents	Indicator number 2 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		p. 141
ESRS S1-16	88 e	Number of days lost to injuries, accidents, fatalities or illness	Indicator number 3 Table #3 of Annex I				p. 141
ESRS S1-16	97 a	Unadjusted gender pay gap	Indicator number 12 Table #1 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		p. 141
ESRS S1-16	97 b	Excessive CEO pay ratio	Indicator number 8 Table #3 of Annex I				p. 141
ESRS S1-17	103 a	Incidents of discrimination	Indicator number 7 Table #3 of Annex I				not material

Disclosure Requirement	Datapoint	Name	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Page
ESRS S1-17	104 a	Non-respect of UNGPs on Business and Human Rights and OECD	Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1)		not material
$\begin{aligned} & \text { ESRS 2 } \ & \text { SBM3 - S2 } \end{aligned}$	11 b	Significant risk of child labour or forced labour in the value chain	Indicators number 12 and n. 13 Table #3 of Annex I				p. 144
ESRS S2-1	17	Human rights policy commitments	Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1				p. 145
ESRS S2-1	18	Policies related to value chain workers	Indicator number 11 and n. 4 Table #3 of Annex 1				p. 145
ESRS S2-1	19	Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		p. 145
ESRS S2-4	19	Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions			Delegated Regulation (EU) 2020/1816, Annex II		p. 145
ESRS 2-4	36	Human rights issues and incidents connected to its upstream and downstream value chain	Indicator number 14 Table #3 of Annex 1				p. 152
ESRS S3-1	16	Human rights policy commitments	Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1				p. 156
ESRS S3-1	17	Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines	Indicator number 10 Table #1 Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		p. 156
ESRS S3-4	36	Human rights issues and incidents	Indicator number 14 Table #3 of Annex 1				p. 159
ESRS S4-1	16	Policies related to consumers and end-users	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				p. 161
ESRS S4-1	17	Non-respect of UNGPs on Business and Human Rights and OECD guidelines	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		not material
ESRS S4-4	35	Human rights issues and incidents	Indicator number 14 Table #3 of Annex 1				not material
ESRS G1-1	10 b	United Nations Convention against corruption	Indicator number 15 Table #3 of Annex 1				p. 167

Disclosure Requirement	Data- point	Name	SFDR reference	Pillar 3 reference	Benchmark Regulation reference	EU Climate Law reference	Page
ESRS G1-1	10 d	Protection of whistle-blowers	Indicator number 6 Table #3 of Annex 1				p. 170
ESRS G1-4	24 a	Fines for violation of anti-corruption and anti-bribery laws	Indicator number 17 Table #3 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II)		p. 171
ESRS G1-4	24 b	Standards of anti- corruption and anti- bribery	Indicator number 16 Table #3 of Annex 1				p. 172

C. Statement on Due Diligence

Core elements of due diligence	Section	Page
a) Embedding due diligence in governance, strategy, and business model	Information provided to and Sustainability Matters addressed by the Undertaking's Administrative, Management and Supervisory Bodies	p. 49
	Integration of sustainability-related Performance in Incentive Schemes	p. 50
	Material Impacts, Risks and Opportunities and their Interaction with Strategy and Business Model	p. 57
b) Engaging with affected stakeholders in all key steps of the due diligence	Interests and Views of Stakeholders	p. 55
	Description of the Processes to identify and assess material Impacts, Risks and Opportunities	p. 63
c) Identifying and assessing adverse impacts	Description of the Processes to identify and assess material Impacts, Risks and Opportunities	p. 63
	Transition Plan for Climate Change Mitigation	p. 67
	Actions related to Climate Change	p. 69
	Actions related to Pollution	p. 85
d) Taking actions to address those adverse impacts	Actions related to Water	p. 91
	Actions related to Biodiversity and Ecosystems	p. 98
	Actions related to Resource Use and Circular Economy	p. 102
	Actions related to the Company's Own Workforce	p. 127
	Actions related to Workers in the Value Chain	p. 158
	Actions related to Affected Communities	p. 168
	Actions related to Consumers and End-users	p 175
e) Tracking the effectiveness of these efforts and communicating	Targets related to Climate Change	p. 73
	Targets related to Pollution	p. 86
	Targets related to Water	p. 93
	Targets related to Biodiversity and Ecosystems	p. 100
	Targets related to Resource Use and Circular Economy	p. 104
	Targets related to the Company's Own Workforce	p. 142
	Targets related to Workers in the Value Chain	p. 162
	Targets related to Affected Communities	p. 169
	Targets related to Consumers and End-users	p. 177

Economic Report

Economic Environment

General Economic Situation

Germany
Eurozone
United States
Japan
๑ Previous year
Current year

Inflation Rate ${ }^{1}$
Change versus previous year (in \%)
5.9|2.2 5.4|2.4 4.1|3.0 3.3|2.7

The global economy only grew at a moderate pace in 2024. Following a phase of weaker momentum in the spring, the second half of the year saw a slight upturn, although this was primarily driven by the USA, where private consumption and corporate investment remained robust. In other advanced economies, however, particularly in the eurozone and Japan, growth was significantly more subdued. The picture in emerging markets remained mixed. While production in Latin America accelerated sharply, growth slowed in Asia, particularly in India and China, where persistent problems in the real estate sector and subdued domestic demand had a dampening effect. Inflation eased only slowly worldwide. While energy prices caused a decline, core inflation stagnated, particularly due to persistently high prices in the services sector. Overall, economic uncertainty remained high, influenced by geopolitical tensions and structural adjustments in various regions.

Economic development in the Eurozone was mixed in 2024. While there was moderate growth in 2024, overall momentum fell short of expectations. Developments varied from region to region, with some countries such as France and Spain surprising on the upside, while others, including Italy, showed stagnating trends. The Olympic Games in Paris in particular provided a temporary boost to growth, but this was not sustainable. The corporate sector gave mixed signals. Weak global demand and sluggish exports weighed on industry, while growth in the service sector increasingly stagnated. Inflation was at a more moderate level this year than in 2023, but remained a key issue. Rising labor costs and freight rates drove up prices, while pressure from energy prices eased.

The economic situation in Germany remained characterized by uncertainty in 2024. Despite an improvement in sentiment indicators, fundamental challenges remained. Industry in particular struggled with fluctuating incoming orders, and the construction sector also failed to record a sustained upturn. Residential construction was in a prolonged crisis, which further slowed economic momentum. The ECB's interest rate cuts were slow to take effect and have hardly been able to boost economic

activity so far. Although the trend in consumer spending was positive, it was not strong enough to noticeably improve the overall economic situation.

Economic development in the USA remained robust in 2024, driven by strong private consumption and solid corporate investment. Government spending, particularly in the area of defense, also had a supportive effect. Despite high key interest rates, financing conditions remained favorable overall, thanks in part to high share prices and low risk premiums. Inflation eased significantly overall, mainly due to lower gasoline prices. Core inflation, on the other hand, remained stable above the target value, in particular due to continued price momentum in the services sector. The US Federal Reserve gradually eased its interest rate policy from the fall. The aim was to stabilize the economy while continuing to control inflation without placing an excessive burden on the labor market.

In 2024, the Japanese economy did experience a temporary recovery, driven by the low value of the yen, which boosted both exports and the tourism sector. Nevertheless, the decline in private consumption and falling real incomes led to a weak domestic economy, causing gross domestic product to shrink slightly. A turnaround began in the summer, when rising real wages and extensive subsidies boosted purchasing power. The economic stimulus package adopted in autumn, which also provided extensive funding for key industries, helped to stabilize and modernize the economy.

Developments in the emerging markets painted a mixed picture. China's economy remained under pressure in 2024. Despite fiscal and monetary policy measures, including support for the real estate sector and consumer vouchers, the domestic economy was subdued. While industry benefited from strong exports and targeted investments, structural problems such as local government debt and the real estate crisis prevented a broad-based recovery. In addition, geopolitical tensions and protectionist measures weighed on foreign trade. The Brazilian economy remained robust in 2024. Private household consumption, the increase in investments and stable industrial production in particular contributed to economic growth. The central bank tightened its monetary policy to take account of the stable economy. Economic development in the Middle East in 2024 remained subdued, characterized by geopolitical tensions, climate-related challenges and global economic uncertainties. The effects of the ongoing conflicts and reduced oil production were partially mitigated by the strengthening of the private sector and strategic reform initiatives. The Indian economy lost momentum in 2024. The potential to catch up after the pandemic appears to have been exhausted, while capacity limits became increasingly apparent. This was reflected in higher wholesale prices for processed products and noticeable inflation, which further curbed private consumption due to more expensive food prices. In contrast, momentum remained high in the emerging markets of South East Asia.

Sales Market Trends

The global economic environment remained dynamic and uncertain in 2024. While supply chain pressures eased, persistent geopolitical tensions and trade disruptions continued to impact material availability and costs. Inflation showed signs of moderation in key markets, yet elevated interest rates and currency fluctuations weighed on consumer spending power. The global cosmetics market displayed steady growth overall, driven by sustained demand in emerging economies and innovationled product categories. However, performance in mature markets was tempered by cautious consumer sentiment and competitive pressures. In addition, China's economy showed only moderate recovery in 2024 with consumer confidence remaining subdued, creating a more challenging environment particularly for the luxury segment. Globally, Mass and Dermocosmetics markets continued to show mid to high single digit growth momentum respectively, notably led by year-on-year growth of Deodorant, Lip and Face Care categories.

Consumer Spending ${ }^{1}$
Change versus previous year (in \%)

• Previous year $\bullet$ Current year
  ${ }^{1}$ Commerzbank Research
  ${ }^{2}$ OECD
  In the financial year 2024, tesa's business activities continued to be shaped by a challenging and volatile global environment. Despite falling inflation and an easing of monetary policy, global economic growth remains subdued due to geopolitical tensions, high interest rates, and production costs. After strong growth in the previous year, the automotive industry experienced a significant slowdown in 2024, particularly in Europe. The electronics market experienced a moderate upturn on the back of lower inflation rates and stable demand for smartphones, PCs, and tablets. Other industrial sales markets suffered from customer uncertainty, price pressure and high interest rates, particularly in Europe and North America. Following sharp price increases in recent years, the development of the consumer goods market in 2024 was also affected by increasing price pressure. Demand in developed markets, particularly in Europe, remained muted due to economic uncertainty, persistently high interest rates, and the rising cost of living.

Procurement Market Trends

The correction in important markets for materials and services continued in 2024. This was due in part to lower than expected growth rates in China and Europe, falling energy costs, and flattening inflation rates. The palm oil market was an exception, experiencing a shortage in the second half of the year due to lower harvest volumes in Southeast Asia caused by unfavorable weather, which resulted in higher prices for dependent raw materials. This overall better market environment than in the previous year, combined with our cross-departmental management of supply shortages and preferential position with key suppliers, enabled us to significantly reduce the supply difficulties for our production sites and distribution partners.

Overall Assessment of the Economic Environment

The global cosmetics market recorded positive development overall in 2024. In the mass market where NIVEA is active, growth was driven by both price increases and volume growth. The dermocosmetic skin care market behaved similarly, growing through both price increases and higher volumes, with price increases tending to make a greater contribution. Both Skin Care and Personal Care (deodorants, soaps, shower gels) achieved strong growth in the reporting year. The strategic focus within the Consumer Business Segment was once again on Skin Care, where our marketing expenditure is concentrated. All relevant Skin Care subcategories recorded positive growth in the financial year.

In both economic and geopolitical terms, 2024 was characterized by various uncertainties along with high volatility. Although inflation is declining, it continues to hamper economic recovery and curb

private demand. The Executive Board of the tesa Business Segment considers the market environment to be volatile and challenging. Thanks to its innovative strength, adaptability, and strategic investments, tesa has managed to grow in economically challenging times (volatile global economy, industries in transition, e.g. automotive industry, slowdown in individual regions and supplier challenges). Additional sales growth is being achieved in particular through new products and strong customer projects in the Industry division.

Results of Operations ${ }^{12}$

Results of operations - Group

Income Statement
(in € million)

	2023	2024	Development in \% ${ }^{1}$
Sales	9,447	9,850	4.3
Cost of goods sold	$-4,031$	$-4,090$	1.4
Gross profit	5,416	5,760	6.4
Marketing and selling expenses	$-3,250$	$-3,461$	6.5
Research and development expenses	$-320$	$-354$	10.6
General and administrative expenses	$-570$	$-605$	6.2
Other operating result (excluding special factors)	$-8$	30	-
Operating result (EBIT, excluding special factors)	1,268	1,370	8.0
Special factors	$-163$	$-76$	-
Operating result (EBIT)	1,105	1,294	17.1
Financial result	0	32	-
Profit before tax	1,105	1,326	20.0
Income taxes	$-356$	$-398$	11.8
Profit after tax	749	928	23.9

${ }^{1}$ Percentage changes are calculated based on thousands of $€$.

Sales

Group sales increased organically by $6.5 \%$ year on year. The Consumer Business Segment recorded organic sales growth of $7.5 \%$ while the tesa Business Segment's growth came to 1.9\%. Exchange rates reduced nominal growth by 2.2 percentage points. Nominal sales for the Group increased by $4.3 \%$ year on year to $€ 9,850$ million (previous year: $€ 9,447$ million).

In Europe, organic sales were up $4.1 \%$ on the previous year. Nominal sales stood at $€ 4,313$ million (previous year: $€ 4,135$ million ${ }^{13}$ ), putting them $4.3 \%$ higher than the previous year.

Organic year-on-year growth in the Americas reached 6.2\%. In nominal terms, sales rose by $3.4 \%$ to $€ 2,567$ million (previous year: $€ 2,484$ million).

Organic sales in the Africa/Asia/Australia region were 10.1\% above the previous year's level. Nominal sales climbed by $5.0 \%$ to $€ 2,970$ million (previous year: $€ 2,829$ million ${ }^{13}$ ).

[^0]
[^0]: ${ }^{12}$ Due to the choice of numerical format (in $€$ million), there may be deviations from the amounts actually posted or rounding differences in the calculation of subtotals and final totals. In addition, the percentage changes relate to values in $€$ thousand.
${ }^{13}$ Change in the regional designation of tesa Turkey from Europe to Asia (previous year Europe: $€ 4,161$ million; previous year Africa/ Asia/Australia: $€ 2,802$ million).

Group Sales
(in € million)

Group Sales by Regions 2024
(in \%)
30.1

African/Asial
Australia
26.1

American
26.1

Expenses/other operating result

The cost of goods sold climbed by $1.4 \%$, which was slower than the increase in sales. Positive price and product mix effects more than offset the negative exchange rate effects caused by the strong euro. This resulted in an overall positive effect on gross profit.

With an increase of $6.5 \%$ to $€ 3,461$ million (previous year: $€ 3,250$ million), marketing and selling
expenses developed at a higher rate than sales. This development is mainly due to higher investments in digital media and an increased focus on skin care. The marketing budget is constantly adjusted to the changing market conditions and especially to changes in consumers' media use. A total of $€ 2,257$ million (previous year: $€ 2,076$ million) was spent on advertising and trade marketing.

Research and development expenses increased by $€ 34$ million to $€ 354$ million (previous year: $€ 320$ million). The focus here was on pioneering technologies and research fields, intensifying collaboration with external research partners, new digitalization opportunities, and sustainable concepts. Our ongoing research work, which also takes regional differences into account, is designed to meet the needs of our consumers all over the world.

General and administrative expenses rose from $€ 570$ million to $€ 605$ million, due primarily to salary inflation and significant investments in digitalization and sustainability projects.

The other operating result (excluding special factors) totaled $€ 30$ million (previous year: -€8 million). This development is largely due to the reversal of operating provisions that are no longer required and an improvement in the net FX result in 2024.

Operating Result (EBIT, excluding special factors)

The Beiersdorf Group's results of operations are determined on the basis of the operating result (EBIT) excluding special factors. Special factors are one-time, non-operating transactions.

EBIT excluding special factors amounted to $€ 1,370$ million (previous year: $€ 1,268$ million), while the EBIT margin was $13.9 \%$ (previous year: $13.4 \%$ ). The Consumer Business Segment generated EBIT excluding special factors of $€ 1,094$ million (previous year: $€ 1,002$ million). The EBIT margin was 13.4\% (previous year: $12.9 \%$ ). The tesa Business Segment achieved EBIT excluding special factors of $€ 276$ million (previous year: $€ 266$ million) and an EBIT margin of $16.3 \%$ (previous year: $16.0 \%$ ).

In Europe, the Group posted EBIT excluding special factors of $€ 681$ million (previous year: $€ 672$ million ${ }^{14}$ ). The EBIT margin was $15.8 \%$ (previous year: $16.3 \%$ ). EBIT excluding special factors in the Americas came to $€ 169$ million (previous year: $€ 123$ million). The EBIT margin was $6.6 \%$ (previous year: $5.0 \%$ ). In Africa/Asia/Australia, EBIT excluding special factors amounted to $€ 520$ million (previous year: $€ 473$ million ${ }^{14}$ ). The EBIT margin was $17.5 \%$ (previous year: $16.7 \%$ ).

Group EBIT
Excluding special factors (in $€$ million)

[^0]
[^0]: ${ }^{14}$ Change in the regional designation of tesa Turkey from Europe to Asia (previous year Europe: $€ 678$ million; previous year Africa/Asia/Australia: $€ 467$ million)

Special Factors

The special effects in the Group amounted to a total of $€-76$ million (previous year: $€-163$ million). The following table provides a detailed overview of the individual effects.

Special Factors (in $€$ million)
	2023	2024
EBIT excluding special factors	1,268	1,370
Special factors - Consumer
Impairments of goodwill: Chantecaille	$-160$	$-38$
Restructuring expenses in the supply chain organization and reorganization of the Consumer division	$-19$	$-43$
Expenses related to the "Care Beyond Skin" program	$-8$	$-6$
Expenses in connection with the integration of the Chantecaille business	$-7$	$-7$
Income from the disposal of Beiersdorf Daily Chemical (Wuhan) Co., Ltd.	11	0
Income from the reversal of provisions for performance-related purchase price components in connection with the acquisition of Chantecaille in the financial year 2022	15	0
Transfer of a property at the Hamburg location to TROMA Alters- und Hinterbliebenenstiftung	0	27
Total	$-168$	$-67$
Special factors - tesa
Impairments of goodwill: tesa nie wieder bohren GmbH	$-4$	$-3$
Impairment of the remaining intangible assets assigned to the cashgenerating unit tesa nie wieder bohren GmbH from the purchase price allocation	0	$-5$
Impairment of the remaining intangible assets assigned to the cashgenerating unit tesa Twinlock B.V. from the purchase price allocation	$-5$	0
Expenses resulting from a technical incident at the tesa plant in Concagno	$-10$	0
Expenses related to the "Care Beyond Skin" program	0	$-1$
Income from insurance payments in relation to the technical incident at the tesa plant in Concagno	24	0
Total	5	$-9$
Total special factors	$-163$	$-76$
EBIT	1,105	1,294

Operating Result (EBIT)

The operating result (EBIT) amounted to $€ 1,294$ million (previous year: $€ 1,105$ million). This corresponds to an EBIT margin of $13.1 \%$ (previous year: $11.7 \%$ ).

Financial Result

The financial result amounted to $€ 32$ million (previous year: $€ 0$ million). This was mainly driven by the positive development of both net interest result and the other financial result.

Income Taxes

Income taxes totaled $€ 398$ million (previous year: $€ 356$ million). The tax rate was $30.0 \%$ (previous year: $32.2 \%$ ). Tax benefits in connection with the effects shown in the table "Special factors" amounted to $€ 13$ million (previous year: $€ 36$ million).

Profit After Tax

Profit after tax was $€ 928$ million (previous year: $€ 749$ million). The return on sales after tax was $9.4 \%$ (previous year: $7.9 \%$ ). Excluding special factors, profit after tax increased to $€ 991$ million (previous year: $€ 876$ million). The corresponding return on sales after tax was $10.1 \%$ (previous year: $9.3 \%$ ).

Group Profit After Tax

Excluding special factors (in $€$ million)

Earnings per Share - Dividends

Earnings per share stood at $€ 4.05$ (previous year: $€ 3.24$ ). Excluding special factors, earnings per share amounted to $€ 4.31$ (previous year: $€ 3.80$ ). These figures were calculated on the basis of the weighted number of shares bearing dividend rights, which totaled 224,959,424 (previous year 226,818,984). The Executive Board and Supervisory Board will propose a dividend of $€ 1.00$ per no-par-value share bearing dividend rights to the Annual General Meeting (previous year: $€ 1.00$ ). For further information on the number, type, and notional value of the shares, please refer to Note 19 "Share Capital" in the notes to the consolidated financial statements.

Results of Operations - Business Segments

Consumer

Sales - Consumer Business Segment
(in $€$ million)

			Change (in \%)
	$01.01 . .31 .12 .2023$	$.01 .01 . .31 .12 .2024$	nominal	organic
Europe	$\mathbf{3 , 3 6 4}$	$\mathbf{3 , 5 4 6}$	$\mathbf{5 . 4}$	$\mathbf{5 . 3}$
Western Europe	2,672	2,785	4.2	3.6
Eastern Europe	692	761	9.9	11.5
Americas	$\mathbf{2 , 1 9 6}$	$\mathbf{2 , 2 8 3}$	$\mathbf{4 . 0}$	$\mathbf{7 . 0}$
North America	980	1,008	2.9	2.8
Latin America	1,216	1,275	4.9	10.5
Africa/Asia/Australia	$\mathbf{2 , 2 2 0}$	$\mathbf{2 , 3 3 3}$	$\mathbf{5 . 1}$	$\mathbf{1 1 . 3}$
Total	$\mathbf{7 , 7 8 0}$	$\mathbf{8 , 1 6 2}$	$\mathbf{4 . 9}$	$\mathbf{7 . 5}$

Sales in the Consumer Business Segment grew organically by $7.5 \%$ in 2024. Exchange rate effects reduced growth by 2.6 percentage points. In nominal terms, sales therefore increased by $4.9 \%$ to $€ 8,162$ million (previous year: $€ 7,780$ million).

All regions contributed to the growth in the Consumer Business Segment. The NIVEA brand increased its market share in particular in the regions of North America and Japan. At the individual country level, notable market share gains were recorded in Mexico, Sweden, and the Philippines. The Derma business unit, with its Eucerin and Aquaphor brands, also gained market share in all regions and in all key categories, with particularly strong performance in the USA, Brazil, Austria, and Germany. The Health Care business unit, too, reported another year of market share growth, driven by particularly strong gains in Australia and Indonesia.

EBIT excluding special factors amounted to $€ 1,094$ million (previous year: $€ 1,002$ million), while the EBIT margin excluding special factors was $13.4 \%$ (previous year: $12.9 \%$ ). The increase in EBIT compared to the previous year is primarily due to the positive development in the gross margin, which more than compensated for the significant targeted investments in marketing, digitalization and research and development. The special factors in the Consumer Business Segment came to $€-67$ million (previous year: $€-168$ million). For further details regarding the composition of special factors, please refer to the table "Special Factors" in the "Result of Operations - Group" Section. The operating result including special factors stood at $€ 1,027$ million (previous year: $€ 834$ million), while the EBIT margin was $12.6 \%$ (previous year: $10.7 \%$ ).

NIVEA (including Labello) grew organically by $9.0 \%$ globally in 2024. Nominal sales increased from $€ 5,304$ million to $€ 5,601$ million. The NIVEA brand's particularly strong growth can be attributed to both sales volumes and pricing. It grew substantially across all major regions, thanks in part to the introduction of new products but also to the strong performance of our core assortment. All main categories posted growth in 2024. The key growth drivers were NIVEA Deo, NIVEA Body Care, NIVEA All Purpose Creams, Lip (NIVEA Lip \& Labello) as well as NIVEA Face Care. In the NIVEA Deo category, existing core product lines such as Black \& White, Deep and Fresh as well as Dry were among the key growth drivers. Growth in the NIVEA Body business can be attributed primarily to the positive performance of the core range and the addition of innovative new product lines such as NIVEA LUMINOUS630® to the category. NIVEA Face continued to grow, chiefly due to the lasting success of the product lines NIVEA LUMINOUS630® and NIVEA Q10. By contrast, the Hair Care and Baby categories, which had been deprioritized, recorded a decline in sales.

The Derma business unit achieved another strong year with double-digit organic sales growth of 10.6\% and nominal sales of $€ 1,372$ million (previous year: $€ 1,252$ million). Eucerin became the $2^{\text {nd }}$ net sales billionaire brand in the Beiersdorf Consumer portfolio in the year 2024. Strong net sales growth was recorded in all regions and in all major categories. Emerging Markets remained a key contributor to the growth and the performance of Thailand as well as Latin America - despite challenging economic conditions in Argentina - are to be highlighted in this region. Additionally, the USA continued its strong performance led by the Aquaphor brand, despite a significant slow-down in the US market which especially impacted the body category in the first half year. The overall growth was fueled by very strong innovations. The growth in Eucerin Sun was supported by the ongoing success around Hydro Protect Ultra-Light Fluid and the Eucerin Face category was driven by further expansion of the Thiamidol ${ }^{\circledR}$ range in the anti-pigment segment and our breakthrough innovation Epigenetics which was launched in the second half of 2024 and is the single biggest product launch in Beiersdorf Derma history. Moreover, the launch in regional white spaces like Eucerin Face in the US and the launch of Eucerin in India were significant milestones in the year 2024. The e-commerce sales channel once again outgrew the offline business.

Health Care recorded organic sales growth of $6.1 \%$, reaching $€ 282$ million (previous year: $€ 267$ million). Sales growth was driven by the core wound care category. Larger sized plasters contributed significantly to the strong result, delivering double-digit net sales growth and gaining market share in all key markets.

In selective cosmetics, our La Prairie brand's organic sales were down by 6.2\%. Nominal sales fell from $€ 543$ million to $€ 509$ million. This result was mainly due to the challenges in the China eco-system, especially in Travel Retail impacted by a negative Premium Skincare market. The introduction of our Platinum Rare Mask and Life Matrix Cream helped to partially mitigate the decline in sales, together with positive performance in the e-commerce channel especially in China benefiting from a successful Douyin launch at the end of 2023. Japan recorded another very strong year driven by the return of tourists.

In the Europe region, organic sales were up $5.3 \%$ on the previous year. Nominal sales climbed by $5.4 \%$ to $€ 3,546$ million (previous year: $€ 3,364$ million).

In Western Europe, organic sales rose by 3.6\%. Strong growth was recorded in particular in Germany, Italy, Spain, and the United Kingdom, with sales of NIVEA Deo, Body Care, and All Purpose Creams, as well as the Eucerin categories Face and Sun, developing especially well. The Health Care business unit's wound care category also contributed to its sales growth. For the La Prairie brand, the negative development of the travel retail business had a significant impact.

Sales in Eastern Europe were up 11.5\% on the previous year in organic terms. All countries in the region contributed to this development, mostly with double-digit growth rates. The NIVEA Deo, Body Cleansing, and Men Shaving categories performed particularly well in the region, as did Eucerin Face, Sun, and Body.

In the Americas region, organic sales grew by 7.0\%. At $€ 2,283$ million, nominal sales were up $4.0 \%$ on the previous year ( $€ 2,196$ million).

In North America, there was organic sales growth of $2.8 \%$, with the NIVEA and Aquaphor brands as the key growth drivers. Coppertone's sales did not reach the prior year level mainly due to poor weather conditions during the core sun season, negative market factors and portfolio streamlining effects.

Sales in Latin America grew organically by 10.5\%. Sales growth was seen in all countries, most notably in Brazil, Mexico, and Chile. NIVEA Deo, Body Care, Face Care and Lip emerged as the main growth drivers. Eucerin also performed very well, particularly in the Body and Face categories.

Sales in the Africa/Asia/Australia region grew by 11.3\% in organic terms. In nominal terms, sales rose by $5.1 \%$ to $€ 2,333$ million (previous year: $€ 2,220$ million). Particularly strong sales were recorded in Japan, Nigeria, Middle East, Saudi Arabia and Turkey with NIVEA Deo, Body Cleansing, All Purpose Creams, and Lip all performing exceptionally well. Eucerin also achieved strong growth in the region, especially driven by the strong market in Thailand. Health Care also performed well across the region.

Consumer Sales
(in $€$ million)

Consumer EBIT
Excluding special factors (in $€$ million)

Consumer Sales in Americas
(in $€$ million)

Consumer Sales by Region 2024
(in \%)
28.6

Africa/Asia/
Australia
28.0

Americas
28.0

Americas

Consumer Sales in Europe
(in $€$ million)

Consumer Sales in Europe
(in € million)

Consumer Sales in Africa/Asia/Australia
(in $€$ million)

tosa
Sales - tesa Business Segment
(in € million)

			Development (in \%)
	$01.01-31.12 .2023$	$01.01-31.12 .2024$	nominal	organic
Europe	770	767	$-0.4$	$-0.5$
Americas	288	284	$-1.3$	0.0
Africa/Asia/Australia	609	637	4.5	5.7
Total	$\mathbf{1 , 6 6 7}$	$\mathbf{1 , 6 8 8}$	$\mathbf{1 . 2}$	$\mathbf{1 . 9}$

*Changes in the regional allocation of tesa Turkey from Europe to Asia (previous year Europe: $€ 797$ million; previous year Africa/sia/ Australia: $€ 582$ million)
${ }^{3}$ The total comprises the sales of the tesa Industry, Consumer and Others divisions.
tesa achieved organic sales growth of $1.9 \%$ in 2024 in a challenging market environment. Exchange rate effects dampened this performance by 0.7 percentage points. Nominal sales increased from $€ 1,667$ million to $€ 1,688$ million.

In Europe, sales were around the previous year's level, with a slight organic decline of $0.5 \%$. Despite the challenging market environment, the Industry division increased sales in most areas, with particularly strong growth recorded in printing and packaging. By contrast, the automotive business was significantly affected by the decline in the market, particularly in the area of e-mobility, and by the postponement of customer projects. The performance of the consumer goods business was marked by increasing price pressure in 2024. Demand remained subdued due to economic uncertainties, persistently high interest rates and the rising cost of living. In nominal terms, tesa achieved sales of $€ 767$ million in Europe (previous year: $€ 770$ million) and therefore sales decreased by $0.4 \%$. The region's share of Group sales fell to $45.5 \%$ (previous year: $46.2 \%$ ).

In North and South America, organic sales remained at the previous year's level ( $0.0 \%$ ). The business performance was mixed: In North America, tesa recorded strong growth in the printing and packaging and automotive sectors, while the electrical systems business was significantly impacted by price pressure and inventory reductions by major customers. In South America, all Industry divisions achieved solid to strong growth, while the Consumer segment remained at the previous year's level, mainly due to intense price competition in the local markets. The region's sales decreased by $1.3 \%$ in nominal terms to $€ 284$ million (previous year: $€ 288$ million). The region's share of Group sales declined to $16.8 \%$ (previous year: $17.3 \%$ ).

In Asia, tesa achieved organic sales growth of $5.7 \%$, particularly due to new project business with products for the electronics industry. Business developed particularly positively in high-growth markets such as India and South East Asia. In nominal terms, sales in Asia increased by $4.5 \%$ to $€ 637$ million (previous year: $€ 609$ million). The region's share of Group sales rose to $37.7 \%$ (previous year: $36.5 \%$ ).

At $€ 276$ million, EBIT excluding special factors was above the previous year's level (previous year: $€ 266$ million). The EBIT margin excluding special factors was $16.3 \%$ (previous year: $16.0 \%$ ). The special factors in the tesa Business Segment amounted to a total of $€ .9$ million (previous year: $€ 5$ million). For further details regarding the composition of special factors, please refer to the table "Special Factors" in the "Result of Operations - Group" section. EBIT excluding special factors was positively impacted by an increase in the gross margin and positive exchange rate effects. This was offset by higher investments in key strategic areas such as innovation, digitalization and geographic expansion into high-growth regions.

The operating result including special factors amounted to $€ 267$ million (previous year: $€ 271$ million), while the EBIT margin was $15.8 \%$ (previous year: $16.3 \%$ ).
tesa Sales
(in $€$ million)
tesa Sales by Regions
(in \%)


tesa EBIT
Excluding special factors (in $€$ million)

Industry

tesa Industry recorded significant sales growth in the financial year 2024. The positive performance of the consumer electronics and printing and packaging businesses made a significant contribution to sales growth, while electrical systems closed the year down on the previous year. The Industry division recorded total organic sales growth of $2.6 \%$. In nominal terms, sales increased by $1.8 \%$ to $€ 1,315$ million (previous year: $€ 1,292$ million). The Industry division's share of total sales amounted to $77.9 \%$ (previous year: $77.5 \%$ ).

In consumer electronics, tesa once again recorded an increase in sales and expanded its position as an important provider of innovative products and solutions for the manufacture of smartphones and tablets. The ranges for mounting front and back modules and innovative reactive adhesive tapes were further developed and transformed into customized solutions. tesa also benefited from a market recovery in 2024.

In printing and packaging, tesa further expanded its activities, particularly in the flexographic printing segment. This was positively influenced by the sustained global growth trend in the packaging industry. In addition, increased inventory levels on the part of customers boosted sales development.

The automotive business recorded modest sales growth in 2024. In a globally declining market environment, tesa achieved significant sales growth in North America and China and increased its market share. This was due in particular to successful customer projects relating to e-mobility in North America and automated adhesive tape solutions for vehicle bodywork (hole covering). Beyond this, tesa was unable to buck the declining market in Europe, particularly with regard to e-mobility, and recorded a drop in sales compared to the previous year. The electrical systems business was not immune to this trend either. In North America in particular, there was considerable price pressure and the reduction in inventories by major customers had a negative impact on business.

Business with industrial distributors was also characterized by subdued demand in 2024, with sales at the previous year's level. Optimizing and expanding sales structures in Asia led to a positive sales trend. Due to the challenging market situation in Europe and North America, sales in those regions fell short of the previous year. The transformation of the product range toward greater sustainability had a positive effect. New product generations with the same high performance but considerably reduced carbon footprints were successfully launched on the market.

Consumer

In a challenging market environment, the Consumer division recorded an organic decline in sales of $1.0 \%$, corresponding to nominal sales development of $-1.1 \%$ to $€ 367$ million (previous year: $€ 371$ million). As a result, the division contributed $21.8 \%$ (previous year: $22.3 \%$ ) of tesa's total sales in the reporting year.

Business with private end consumers and professional tradespeople declined slightly in Europe and Latin America due to the increased cost of living, economic uncertainty, and high interest rates. Increasing price pressure meant that price increases could not be implemented as planned, and prices remained at the previous year's level in the reporting period.

The main growth drivers on the product range side were fly screens, self-adhesive fastening solutions, and repair tapes, while sales of sealing tapes such as tesamoll, painter's tapes and packaging tapes declined.

In terms of sales channels, there was growth particularly in the hardware store business and in ecommerce. In a market environment dominated by a downturn in the construction industry, business with professional tradespeople saw a decline in sales, while the stationery business was down on the previous year.

Net Assets

Net Assets - Group
(in € million)
Assets	Dec. 31, 2023	Dec. 31, 2024
Non-current assets ${ }^{1}$	6,653	6,570
Inventories	1,514	1,612
Other current assets ${ }^{1}$	3,329	3,622
Cash and cash equivalents	1,133	1,207
	12,629	13,011
Equity and liabilities	Dec. 31, 2023	Dec. 31, 2024
Equity	8,339	8,495
Non-current provisions	500	533
Non-current liabilities	286	287
Current provisions	629	599
Current liabilities	2,875	3,097
	12,629	13,011

Securities in the FVOO category amounting to $€ 136$ million were reclassified from short-term securities to long-term securities (previous year: non-current assets: $€ 6,517$ million; long-term securities: $€ 2,675$ million; other current assets: $€ 3,465$ million; shortterm securities: $€ 1,227$ million).

Non-current assets decreased by $€ 83$ million to $€ 6,570$ million (previous year: $€ 6,653$ million ${ }^{15}$ ). Longterm securities decreased by $€ 345$ million to $€ 2,466$ million (previous year: $€ 2,811$ million ${ }^{15}$ ). The decline in this item is mainly due to increased investment in short-term securities. Capital expenditure on property, plant, and equipment, and investment in intangible assets amounted to $€ 437$ million (previous year: $€ 517$ million). Of this amount, $€ 374$ million related to the Consumer Business Segment (previous year: $€ 418$ million) and $€ 63$ million related to the tesa Business Segment (previous year: $€ 99$ million). The capital expenditure in 2024 primarily involved expanding capacity at the production facilities and the new distribution center at the Leipzig site. Depreciation and impairment losses amounted to $€ 357$ million. In the previous year, this position totaled $€ 449$ million, partly due to the goodwill impairment at Chantecaille. Non-current assets also include the lease receivable in connection with Clinique La Prairie ( $€ 110$ million, previous year: $€ 0$ million).

Inventories increased by $€ 98$ million to $€ 1,612$ million (previous year: $€ 1,514$ million). Other current assets increased to $€ 3,622$ million (previous year: $€ 3,329$ million ${ }^{15}$ ). This item includes short-term securities of $€ 1,159$ million (previous year: $€ 1,091$ million ${ }^{15}$ ). Trade receivables increased by $€ 194$ million to $€ 1,792$ million (previous year: $€ 1,598$ million). Income tax receivables amounted to $€ 250$ million (previous year: $€ 227$ million), while other current assets increased by $€ 29$ million to $€ 282$ million (previous year: $€ 253$ million).

Cash and cash equivalents increased to $€ 1,207$ million (previous year: $€ 1,133$ million). Net liquidity (cash, cash equivalents, and long- and short-term securities less current and non-current lease liabilities less other financial liabilities) decreased by $€ 54$ million to $€ 4,566$ million (previous year: $€ 4,620$ million). One reason for the decline in net liquidity is the share buyback program ( $€ 501$ million), which was carried out during the year. Other financial liabilities decreased by $€ 153$ million to $€ 30$ million (previous

[^0]
[^0]: ${ }^{15}$ Securities in the FVOO category amounting to $€ 136$ million were reclassified from short-term securities to long-term securities (previous year: non-current assets: $€ 6,517$ million; long-term securities: $€ 2,675$ million; other current assets: $€ 3,465$ million; shortterm securities: $€ 1,227$ million).

year: $€ 183$ million), mainly as a result of the repayment of the short-term liability from Beiersdorf AG to TROMA Alters- und Hinterbliebenenstiftung.

Financing Structure
(in \%)

• Equity $\odot$ Non-current liabilities $\odot$ Current liabilities

Total non-current provisions and liabilities stood at $€ 820$ million (previous year: $€ 786$ million). This item includes provisions for pensions and other post-employment benefits, which amounted to $€ 328$ million (previous year: $€ 350$ million). Deferred tax liabilities stood at $€ 135$ million (previous year: $€ 133$ million).

Total current provisions and liabilities increased by $€ 192$ million to $€ 3,696$ million (previous year: $€ 3,504$ million) mainly as a result of the increase in trade payables. The equity ratio was $66 \%$ (previous year: $66 \%$ ). Non-current liabilities accounted for $6 \%$ (previous year: $6 \%$ ) and current liabilities for $28 \%$ (previous year: $28 \%$ ).

Significant changes in Beiersdorf's capital structure are not expected.

Financial Position

Cash Flow Statement - Group
(in € million)

	2023	2024
Gross cash flow	1,057	1,269
Change in net current assets	-116	-38
Net cash flow from operating activities	941	1,231
Net cash flow from investing activities	-341	-126
Free cash flow	600	1,105
Net cash flow from financing activities	-492	-1,029
Other changes	-55	-2
Net change in cash and cash equivalents	53	74
Cash and cash equivalents as of Jan. 1	$\mathbf{1 , 0 8 0}$	$\mathbf{1 , 1 3 3}$
Cash and cash equivalents as of Dec. 31	$\mathbf{1 , 1 3 3}$	$\mathbf{1 , 2 0 7}$

Gross cash flow amounted to $€ 1,269$ million in the period under review, up $€ 212$ million on the prior year's value.

The change in working capital led to an outflow of $€ 38$ million (previous year's outflow: $€ 116$ million). The increase of $€ 98$ million in inventories and of $€ 219$ million in receivables and other assets was accompanied by a $€ 279$ million increase in trade payables and current provisions.

The net cash outflow from investing activities amounted to $€ 126$ million in the reporting year (previous year's outflow: $€ 341$ million). Net investments of $€ 307$ million in the sale of securities, interest and other financial income received of $€ 103$ million as well as proceeds of $€ 22$ million from the sale of intangible assets and property, plant, and equipment were offset by capital expenditure of $€ 437$ million for property, plant, and equipment, and intangible assets, payments for acquisitions and other investments of $€ 115$ million as well as payments for investments in associated companies and other investments of $€ 6$ million.

Free cash flow was $€ 1,105$ million, up by $€ 505$ million on the prior-year value (previous year: $€ 600$ million). The net cash outflow of $€ 1,029$ million from financing activities (previous year's outflow: $€ 492$ million) comprised the Beiersdorf AG dividend payment of $€ 227$ million, and other financial inflows and outflows with a net amount of $€ 802$ million.

Cash and cash equivalents amounted to $€ 1,207$ million (previous year: $€ 1,133$ million).

Financing and Liquidity provision

Hedging currency, interest rate, and default risks as well as investing liquid assets are at the heart of financial management at Beiersdorf. Providing liquidity for the Group is also a paramount objective. The type and volume of transactions are in line with the basic operating and financial business.

Cash and cash equivalents are generally held as readily available bank balances at banks with good to very good credit ratings within defined counterparty limits. Balances are mainly held in the local currency of the respective subsidiary.

We pursue a low-risk and flexible investment policy. The main objective of our securities investments remains the ability to provide liquid funds at short notice for operating investments and acquisitions. As at the end of 2024, our securities portfolio held by Beiersdorf AG comprised $83.2 \%$ corporate bonds (previous year: $89.4 \%$ ), $3.4 \%$ government bonds (previous year: $1.4 \%$ ), $8.6 \%$ in money market funds (previous year: $4.0 \%$ ), $2.8 \%$ equity fund units (previous year: $3.3 \%$ ) and $2.0 \%$ mortgage bonds (previous year: $2.0 \%$ ). All interest-bearing securities are investment grade; equities are only a small addition to this low-risk, highly liquid portfolio. No significant changes to the investment policy are planned for the 2025 financial year.

In 2024, Beiersdorf paid a significantly higher dividend than in the previous year (2024: EUR 1.00 per share; previous year: EUR 0.70 per share). We also used part of the cash flow and available financial resources to implement a share buyback program in the amount of EUR 501 million. It was not necessary to borrow funds to finance these expenses.

Cash flow plans with a time horizon of up to 12 months are used to determine liquidity requirements.

For the time being, Beiersdorf will refrain from having its creditworthiness assessed by external rating agencies. As we only take out external loans to a very limited extent, we do not consider such a rating to be necessary. If, in our view, it becomes necessary to obtain such a rating in the future, we will arrange this. This would correspond to a higher rating in the demanding investment grade segment.

Details on risk management in the financial area can be found in the notes to the consolidated financial statements ("notes to the balance sheet," note 30).

Overall Assessment of the Group's Economic Position

Overall Assessment of the Group's Economic Position

		Result in 2023	Forecast for 2024			Result in 2024
			2023 Annual Report	in H1 2024 Report	in 9M 2024 Quarterly Statement
Sales growth (organic)
Consumer	(in \%)	12.5	in the mid-singledigit range	$6-8 \%$	$6-8 \%$	7.5
tesa	(in \%)	3.2	in the low-to-mid-single-digit range	$2-5 \%$	$2-5 \%$	1.9
Group	(in \%)	10.8	in the mid-singledigit range	$6-8 \%$	$6-8 \%$	6.5
EBIT margin (excluding special factors)
Consumer	(in \%)	12.9	50 basis points above the previous year's level	50 basis points above the previous year's level	50 basis points above the previous year's level	13.4
tesa	(in \%)	16.0	on previous year's level	on previous year's level	on previous year's level	16.3
Group	(in \%)	13.4	slightly above the previous year's level	slightly above the previous year's level	slightly above the previous year's level	13.9

The Group generated sales of $€ 9,850$ million (previous year: $€ 9,447$ million). Organic sales were up by $6.5 \%$ (previous year: $10.8 \%$ ). EBIT excluding special factors reached $€ 1,370$ million (previous year: $€ 1,268$ million). The EBIT margin excluding special factors was $13.9 \%$ (previous year: $13.4 \%$ ).

The Consumer Business Segment can look back on another successful financial year in 2024, during which we further increased our spending on strategic priorities. A key focus was on our Skin Care categories, as well as on investments to drive further digitalization. As a result, our e-commerce sales again grew faster than our offline business. Our investments in research and development laid the foundation for innovative breakthrough products that allowed us to grow faster than the market as a whole. Additionally, we further increased our marketing spend, while continuously optimizing it through efficiency measures and the expansion of digital marketing activities.

In 2024, the Consumer Business Segment generated organic sales growth of 7.5\% (previous year: $12.5 \%$ ). This attests to Beiersdorf's strong market position, which is bolstered by a diversified portfolio. The solid performance of NIVEA and Derma, in particular, successfully offset the weaker results of our luxury brands.

Our core brand NIVEA saw significant growth in both the Skin Care and Personal Care segments in 2024, with all relevant subcategories contributing substantially to this performance. Standout results were recorded in the Skin Care segment, particularly in the facial care, lip care, and body care categories. The deodorants category in the Personal Care segment also continued to grow dynamically. Our derma business, with the Eucerin and Aquaphor brands, likewise continued its upward trend, showing significant progress in terms of both sales and market share expansion. Driving this growth were further innovations centered around the active ingredient Thiamidol ${ }^{\circledR}$, as well as the successful introduction of the facial care category in the USA. The Health Care segment, too, successfully continued its growth trajectory, fueled by strong performances in core markets such as Germany and Australia, as well as by robust growth in Indonesia and Mexico. Our luxury business, made up of the La Prairie and Chantecaille brands, again faced significant challenges in 2024. Most notably, the difficult macroeconomic conditions in China weighed on the sales performance of our premium brand La Prairie. On the other hand, Chantecaille was able to steadily increase its growth rates over the course of

the year and successfully launched its products in mainland China despite these challenging conditions. Although sales continued to rise, earnings fell slightly short of our expectations due to the challenges mentioned above. Even in an environment of persistent geopolitical crises and macroeconomic challenges, we were able to increase our operating result (EBIT, excluding special factors) and EBIT margin despite significant investments in our strategic development. For the Consumer Business Segment, the EBIT margin excluding special factors stood at 13.4\%, an improvement over the previous year's figure of $12.9 \%$.

In 2024, the tesa Business Segment achieved organic sales growth of 1.9\% (previous year: 3.2\%) in a persistently challenging global market environment. The Industry division, which covers direct business with industrial customers and industrial trade, recorded an increase in sales compared to the previous year. In particular, the Consumer Electronics and Printing and Packaging business areas showed positive business development with growth rates in the upper single-digit range. The Consumer division, which includes sales to end consumers and craftsmen, achieved sales that were below the previous year's level. For tesa, the EBIT margin before special effects was 16.3\% (previous year: 16.0\%).

Geopolitical crises and conflicts had no material impact on Beiersdorf's results of operations, net assets, or financial position. In a dynamic and challenging environment, Beiersdorf achieved healthy growth and returns in the 2024 financial year.

Beiersdorf AG

Business Activities

Beiersdorf AG is based in Hamburg (Germany) and is the parent company of the Beiersdorf Group. As of December 31, 2024, Beiersdorf AG employed 2,568 people (previous year: 2,439). The number of vocational trainees and trainees not included in this figure was 124 (previous year: 114).

Beiersdorf AG is responsible for the German Consumer business and provides typical holding company services to its affiliates. In addition to its own operating activities, the company manages an extensive investment portfolio and is the direct or indirect parent company of over 190 affiliates worldwide. Beiersdorf AG also performs central planning/financial control, supply chain, treasury, and human resources functions, as well as a large proportion of research and development activities for the Consumer business. In addition, the company is responsible for the regional management of European sales and the procurement of products as well as global royalty management.

Beiersdorf AG's operating business is one part of the Beiersdorf Group's business activities. The entire company is managed on the basis of the key performance indicators outlined in the "Management and Control" section of the Combined Management Report. It is only possible to gain a full insight into the key performance indicators at the level of the Group.

The net assets, financial position, and results of operations of Beiersdorf AG are dominated by its own business activities and by the activities of its affiliates in the form of royalty income and dividend income. Consequently, the economic position of Beiersdorf AG essentially corresponds to that of the Group as a whole. Similarly, the opportunities and risks as well as the expected business development for Beiersdorf AG correlate closely with those for the Group, particularly regarding the growing global political and economic uncertainties and their potential impact on our key procurement, transport, and sales markets.

Basis of Preparation

The annual financial statements of Beiersdorf AG are prepared in accordance with the provisions of the Handelsgesetzbuch (German Commercial Code, HGB) and the Aktiengesetz (German Stock Corporation Act, AktG). The recommendations of the German Corporate Governance Code that are relevant to the annual financial statements were taken into account.

Result of Operations - Beiersdorf AG

Income Statement - Beiersdorf AG in Accordance with HGB
(in € million)

	2023	2024
Sales	1,727	1,843
Other own work capitalized	-	1
Other operating income	35	96
Cost of materials	$-327$	$-338$
Personnel expenses	$-364$	$-360$
Depreciation and amortization of property, plant, and equipment, and intangible assets	$-46$	$-49$
Other operating expenses	$-962$	$-865$
Operating result	63	328
Net income from investments	303	134
Net interest expense	$-59$	$-72$
Other financial result	$-5$	20
Financial result	239	82
Profit before tax	302	410
Income taxes	$-37$	$-161$
Profit after tax	265	249
Transfer to other retained earnings	$-13$	$-1$
Net retained profits	252	248

Beiersdorf AG's sales increased by $€ 116$ million to $€ 1,843$ million in the reporting year (previous year: $€ 1,727$ million). This includes product sales of the Consumer Germany division as well as royalty income and income from the provision of services to affiliates. $€ 1,051$ million (previous year: $€ 997$ million) of sales were generated in Germany and $€ 792$ million (previous year: $€ 730$ million) in other countries.

The operating result rose by $€ 265$ million to $€ 328$ million due to higher sales and higher other operating income, while other operating expenses fell as a result of elimination of one-off compensation payments to some European subsidiaries due to settlement payment agreements.

The financial result deteriorated by $€ 157$ million compared to the previous year. This decline resulted from a lower net income from investments of $€ 169$ million due to lower dividend distributions and a $€ 13$ million drop in net interest expense, while the other financial result improved by $€ 25$ million.

Accordingly, profit before tax was up by $€ 108$ million at $€ 410$ million compared to previous year.
In 2024, taxes on income amounted to $€ 161$ million. In the previous year, the figure was $€ 37$ million.
Profit after tax amounted to $€ 249$ million (previous year: $€ 265$ million).

Net Assets and Financial Position - Beiersdorf AG

Balance Sheet - Beiersdorf AG in Accordance with HGB (in € million)
Assets	Dec. 31, 2023	Dec. 31, 2024
Intangible assets	80	50
Property, plant, and equipment	382	387
Financial assets	5,421	4,860
Fixed assets	5,883	5,297
Inventories	9	3
Receivables and other assets	1,065	1,143
Securities	561	1,030
Cash and cash equivalents	43	124
Current assets	1,678	2,300
Prepaid expenses	7	9
Deferred tax assets	132	107
	7,700	7,713
Equity and liabilities	Dec. 31, 2023	Dec. 31, 2024
Equity	3,019	2,541
Provisions for pensions and other post-employment benefits	634	596
Other provisions	329	360
Provisions	963	956
Liabilities	3,718	4,216
	7,700	7,713

Fixed assets fell by a considerable $€ 586$ million year-on-year. This decrease was largely due to the maturity and sale of long-term government and corporate bonds. The additions to property, plant, and equipment of $€ 40$ million were offset by depreciation of property, plant and equipment of $€ 20$ million.

Current assets increased by $€ 622$ million over the financial year to $€ 2,300$ million. This includes shortterm securities of $€ 1,030$ million (previous year: $€ 561$ million). The increase in this item is mainly due to an increase in new investments of cash and cash equivalents in short-term government and corporate bonds. In addition, receivables and other assets increased by $€ 78$ million due to higher receivables from affiliated companies.

Liabilities also increased by a considerable $€ 498$ million year on year to $€ 4,216$ million. This was mainly due to an increase of $€ 579$ million in financial liabilities to affiliated companies.

Total assets reported in the balance sheet of $€ 7,713$ million are at the previous year's level (previous year: $€ 7,700$ million). The $€ 478$ million decrease in equity to $€ 2,541$ million (previous year: $€ 3,019$ million) is due to the share buy-back carried out in 2024. Accordingly, the equity ratio amounted to $32.9 \%$ (previous year: $39.2 \%$ ).

The Executive Board and Supervisory Board will propose to the Annual General Meeting that a dividend of $€ 1.00$ (previous year: $€ 1.00$ ) per no-par-value share bearing dividend rights (223,214,380 shares) be distributed from the net retained profits of $€ 248$ million.

Risk and Opportunities Report

In the course of its business activities, the Beiersdorf Group is exposed to a multitude of risks and opportunities. These risks and opportunities result, among other things, from its activities that seek to develop opportunities to improve the company's competitiveness and to consciously take risks.

Risks and opportunities encompass specific events and developments with a certain probability of occurrence that may have material negative or positive financial and/or non-financial effects on the achievement of the Beiersdorf Group's objectives. Beiersdorf uses an integrated risk and opportunity management system, in particular, to identify and evaluate material risks at an early stage and to consistently limit them using counteractive measures. This system is coordinated at Group headquarters. Risk landscapes or maps, prepared by external and established organizations, are consulted for the overall assessment.

Integrated Risk and Opportunity Management System

At Beiersdorf Group, the risk and opportunity management system is an integral part of the central and local planning, management, and control processes in the individual affiliates, management units, regions, as well as functions. It applies at Consumer and tesa Business Segment levels, and at Group level. Risk and opportunity management is complemented by the accounting-related internal control systems, the various internal and external monitoring bodies - supported by Internal Audit - and external auditors. Compliance management, which is also relevant in this context, is described extensively in the chapter "Non-financial Statement."

Risk and opportunity management (hereinafter referred to as risk management) is closely aligned with the corporate strategy and helps Beiersdorf to identify its potential and to analyse and make optimal use of this potential while always taking risks into account. Regularly performing analyses of customers and the competition, for example, enables a swift response to dynamic market developments. Specific market opportunities and risks are derived from the information obtained.

Beiersdorf actively incurs risks only if there is a corresponding opportunity for an appropriate increase in value, and only if they can be managed using established methods and measures within the relevant organization. In cases where the full avoidance of risks is not possible or reasonable, risks are mitigated using appropriate measures, or are transferred to third parties such as insurance companies.

Within the risk management process, periodic inventories are carried out to identify, evaluate, document, and subsequently communicate the material risks in a structured way along with the measures to manage these risks. The corresponding principles, reporting and feedback processes, and responsibilities are laid out in a directive that applies across the Group. This is updated regularly.

	Probability of occurrence	Possible financial effects ${ }^{1}$
Strategic, functional \& operational risks	Unlikely	Low
	Possible	Medium
	Likely	Major
	Unlikely ( $<10 \%$ )	Severe
	Unlikely ( $10 \%$ < $-<50 \%$ )	Medium
	Likely ( $50 \%<-<90 \%$ )	Major
	Almost certain (> 90\%)	Severe

${ }^{1}$ Uniform measurement from a Group perspective; differentiation by risk type and business segment in operational management

Beiersdorf distinguishes between strategic, functional, and operational risks. Strategic risks encompass fundamental frameworks, developments, and events that could have a substantial impact on the Group's business model or its business segments. Functional risks are challenges inherent to the business model. The various specialist functions generally work at global or regional level to counter these risks, with sustainable actions relating to the design of operational and organizational structures as well as with specific individual measures. The opportunities and risks associated with climate change are also particularly integrated into strategic and functional risk management. Operational risks and opportunities are those that may influence short-term sales and profits of our corporate affiliates.

Appropriate observation periods are assigned to these risk categories. A period of five years generally applies for strategic risks. For functional risks, the period is two years as a rule, and for short-term operational risks one year.

The risks (within their category) are classified based on their probability and the potential financial and non-financial impact of their occurrence. While different thresholds are used in operational management to classify the financial effects according to risk type, a uniform view from the Group perspective applies from the viewpoint of the materiality of the risks with accordingly uniform thresholds. The likelihood of occurrence and impact of risks are determined on a net basis, assuming that risk-mitigation measures have already been implemented or at least that specific plans for them exist.

The Executive Board and supervisory bodies are regularly updated on the risk situation at Consumer and tesa Business Segment levels and at Group level. Besides this, direct lines of communication ensure that suddenly occurring material risks are also reported immediately to management. Continuous information sharing with the Corporate Development and Corporate Group Controlling functions additionally encourages the consideration of risk aspects in the support provided to management. The centralised risk management is also in constant communication with topic-specific task forces, which are created by the Executive Board as necessary. During the financial year 2024, however, no special teams covering more major risk topics were active.

The Corporate Risk Board (CRiB) continued its work in the reporting year and is a key body advising the Executive Board on risk management matters. The CRiB continues to consist of the heads of important, mostly globally responsible corporate departments comprising multiple areas of responsibility (Marketing, Quality Management, Internal Audit, Communication, Sustainability, Group Accounting, IT Security, Legal). The task of this body is to collate the various risks - both those already known and those newly identified by the CRiB - using a broad-based approach and to analyze them in depth and present them in summarized form. By bringing together many different perspectives, it provides Beiersdorf with important collective intelligence, further improving and complementing the existing analysis of material risks.

As a standard procedure, the Executive Board and Supervisory Board dealt with the main risks and opportunities by comparing the updated, qualitatively (by allocating and bundling functional risks to strategic risks) and quantitatively aggregated risk portfolio with the financial, also updated overall riskbearing capacity. The aim was again to determine whether there was any need for a change in the overall assessment of the risk situation (see below) on this basis. In order to assess the risk situation, the potential negative financial effects on the forecast EBIT of the main risks are added together should they occur.

To ensure maximum transparency and traceability, Beiersdorf's financial risk-bearing capacity is calculated based on average net liquidity. This method is used since it is particularly suitable for showing the short-term risk absorption capability: Liquidity (unlike equity) is available to immediately tackle a risk should it occur. The available free cash flow used for assessing the development of net liquidity in the multi-period perspective is adjusted solely for the previously deducted investments in securities and effects from past M\&A transactions. The calculation of the risk-bearing capacity is therefore based on a very conservative approach, as it deliberately does not take into account potentially significant short-term increases in our liquidity, which could be used in actual crisis situations. These increases could include, for example, new and/or increased credit lines, the release of hidden reserves, the sale of fixed assets, individual business units, or own shares from our portfolio, the temporary suspension of dividend payments, or the reduction of planned investments in the market or in maintaining/expanding our fixed assets. We used the average for the last five years net liquidity and cash flow to ensure that the risk-bearing capacity assessment was not too strongly influenced by more short-term or one-off events.

As a result of comparing the risk situation with risk-bearing capacity, it can be concluded that, over the relevant observation period of the next two years, the current risk portfolio, revalued during the reporting year, would still not give rise to a financial situation even remotely jeopardizing the Beiersdorf Group's continued existence, even given the full and simultaneous occurrence of all the individual risks.

Presentation of Material Risks and Opportunities

Strategic Risks

All strategic and hence material risks that already existed in 2023 were again subject to a comprehensive review. Where necessary, definitions of these risks were adjusted or supplemented, and the assessment of their probability and/or impact updated or changed (in other words, the potential negative financial impact on the forecast EBIT).

The analysis showed the following year-on-year change in the overall risk situation of the Consumer Business Segment: While the likelihood of occurrence rose slightly, the risk impact decreases overall. For example, the likelihood of reputational risks is higher, since consumers are increasingly demanding statements from companies on (socio-)political events; the risk impact is lower, for instance, in the field

of sustainability risks, since Beiersdorf Consumer is a pioneer in many aspects and is perceived as such by consumers and retailers. As part of our cautious approach, the opportunities from the quantitative net determination of the risk portfolio that have so far exceeded our medium-term planning are not taken into account, as was previously the case. We have continued to keep risk aspects that we regard as part of the day-to-day challenges we continuously face as part of our business model, out of the definition of strategic risks, since these are generally already captured in our financial planning. These include, for example, recurring disputes with retailers over pricing, and diverse attacks on our brands and products by competitors, in particular the defense of our trademarks and product claims. Due to the expansion of reporting to include the segment level, the material strategic risks of tesa are presented below.

Material Risks in the Consumer Business Segment

1. Reputational risks to brands and the company

Maintaining and increasing the value of our major consumer brands with their broad appeal remains of decisive importance to Beiersdorf's business development. The trust of our customers and, in particular, of the consumers of our products, is essential to this and cannot be taken for granted. We have designed our risk management system to fully justify this trust and to provide enduring, successful protection to the value of our brands. We have geared our risk management system towards fully justifying this trust at all times and thus successfully protecting the value of our brands in the long term. We continuously review our internal processes in all areas of the company in order to be able to react appropriately, correctly, quickly and effectively in the event of any potentially damaging or reputationally harmful incidents. We assume that this, together with all the activities described below to optimize the quality of our products and our overall market presence, can help to ensure that no critical issues arise in the event of potential reputational problems. This applies equally to our brands and to our company as a whole. Our extensive operational and communication measures in relation to sustainability, diversity, and other aspects of Corporate Social Responsibility (CSR) also help to limit the risks. We have reduced the risk impact compared to the previous year, particularly by incorporating our crisis management system, which is very well developed and tested overall. However, we have increased the assumption relating to the likelihood of occurrence. This was done in light of the fact that we perceive that there is an increasingly large group of our consumers that expects us to comment not only on sociopolitical but also geopolitical topics. As a consequence, Beiersdorf, like many other companies, becomes more vulnerable. Against this backdrop, we continue to categorize the risks to the reputation of our brands and our company as medium and possible overall.

2. Critical ingredients

For a clearer distinction and risk assessment, we have presented the risk arising from the use of critical ingredients separately from general procurement risks. Our research and development department, with its broad expertise and geographical coverage, ensures that we always comply with all local legal requirements. It is supported in this by a specialized regulatory affairs function. We are responding to the growing requirements by building up additional human resources. We are also in permanent dialog with the relevant authorities so that we can react in good time when changes to product formulation requirements begin to emerge. As a member of the relevant associations, particularly at the European level, we as a company receive early notice of emerging changes. This also includes our regular dialog with the key suppliers. However, we note that challenges through the further spread of digital applications and channels critical of the ingredients used in the cosmetics industry remain at a high level. We continue to categorize the risk as medium and possible.

3. Accelerating digitalization

Digitalization is spreading to all areas of life, which is why we divide the risk into internal and external digitalization aspects. Internally, the risks refer in particular to potential suboptimal processes and low productivity in individual areas due to a lack of or too poorly developed digitalization. Externally, the penetration of digital technology in consumer interaction all along the marketing and sales process is still constantly increasing. Beiersdorf therefore continues to work hard at planning and implementing these interactions in a way that makes them as specific to the target group as possible. We made considerable efforts in precision marketing in 2024, enabling us to invest significantly more effectively. At the same time, we put in place organizational measures for even more integrated working, across all brands, between the functions and IT, and in close collaboration with the business. Specifically in e-commerce, we further increased our resourcing to reflect the growing importance of this channel. Recruiting and retaining suitable talent remains a big challenge. This is particularly the case in the field of data analysis, which is crucially important for generating fast and accurate information to guide our actions, including in close dialog with our customers. Another aspect that remains is ensuring the full protection of private data. Our data protection management system, globally steered and locally implemented, helps us ensure that sensitive data of our company, business partners, and consumers is handled securely at all times. This includes, for example, the development and use of our social media presence and the development of new software solutions. These efforts are complemented by clear internal rules of conduct and transparent, further adjusted management structures, extensive training and monitoring activities, and, in the case of data protection, further work on global roll-out. In this reporting period, as a result of our various measures, we continue to regard the risk as medium and possible.

4. Growing political and economic uncertainty

The global political situation remained very fraught in the reporting period. Military conflict both in Ukraine and the Middle East continues. In both cases, the uncertainty of an escalation into even greater regional conflicts remains, with potential impacts on our business, both directly through impacts on sales in the countries affected and indirectly through consumer confidence in the respective region.

The outlook for the world economy is difficult to assess overall, especially in view of the change of government in the USA and the associated expectations regarding changed priorities. Uncertainty continues to arise from the possible introduction of import tariffs on imports of finished goods from Mexico and Europe.

Even though the high interest phase of the past few years in the major economic regions of the USA and Europe has passed, the question of the direction in the medium term in view the possible resurgence of inflation remains, also driven by ever growing government debt. The extent to which a potential loss of purchasing power would translate into slower market growth for Beiersdorf remains to be seen.

China remains the greatest element of uncertainty in Asia. Despite the new economic measures to stabilize the overall economic situation, it continues to be unclear whether the result will be a substantial reversal in consumer confidence. That would benefit not least our significant La Prairie business in China. Beiersdorf remains geographically relatively well balanced across all its divisions, without extreme dependency on a particular market. Potential market entries in new countries are comprehensively evaluated in their economic and political context. In the case of Russia, care is continuing to be taken to strictly comply with all sanctions. Against the background of general global tension, we continue to categorize the risk from the impact of an escalating military conflict or economic crisis in a market relevant to Beiersdorf as major and possible.

1. Shortage of raw materials, natural resources, and energy

The procurement prices especially for raw- and packaging materials have a significant impact on the profitability of our Consumer business. Unplanned price increases may arise from: uncertainties in procurement markets (unalterable "VUCA" world: "vulnerability," "uncertainty," "complexity," "ambiguity"), capacity bottlenecks in upstream value chains, loss of suppliers (insolvency, realignment of their strategy, acquisitions), regulatory changes especially due to environmental and sustainability aspects or trade disputes (customs barriers and others).

To allow us to respond swiftly and appropriately to potential future or short-term supply bottlenecks, we are continuously monitoring our markets and suppliers and use appropriate contract management. Our Procurement also carefully manages the scope, timing, and frequency of our individual material call-offs. As a priority, strategic partnerships remain an important element of actively managing our supplier portfolio, as do internal programs designed to ensure the agility of the supply chain as a whole and its resilience to disruption. In addition, we are intensively seeking potential cost reductions throughout the value chain as part of the continuation of our broad-based value engineering project. Despite progress in strengthening our resilience, the external environment remains difficult to predict. Therefore, we now regard the strategic and corresponding functional risks in relation to availability and price trends on the procurement side as major and possible. The increase in the risk impact is also based on the growing share of material costs due to the forecast sales growth.

6. Cybersecurity

As part of the review of our strategic risks, the risk from threats to our IT system and the IT systems of our direct business partners remains. This reflects the special and further increasing significance of this risk. With regard to cybersecurity, we successfully defended ourselves again in 2024 against increasing direct and indirect attacks on our own IT systems. We achieved further improvements in IT infrastructure, particularly in cloud services and recovery capabilities. As in the last two years, we have received externals certification according to ISO 27001 for information security, now in particular already with regard to meeting the new NIS2 regulations. We are also continuing to improve the protection of our operational systems along the value chain, especially in the supply chain. In light of the growing overall number of threats, we continue to categorize the risk as medium and possible, despite all the progress achieved.

7. Growing ESG requirements

The regulatory requirements in the area of ESG (environmental, social and governance risks) are continuing to grow. This is due particularly to the European Green Deal, which is in the course of implementation through national law, and to the Lieferkettensorgfaltspflichtengesetz (German Supply Chain Due Diligence Act, LkSG). Its implementation progressed further in 2024, with supplier evaluations and audits being carried out as planned and work on further IT support. Implementing the EUDR (EU Regulation on Deforestation-free Products) was another focus in 2024, with dedicated resources working to ensure compliance with the regulations.

Irrespective of legal requirements, Beiersdorf has been setting ambitious goals. This is evident from our own specific sustainability targets in relation to packaging reduction and avoidance, as well as climate protection. We are continuing to follow through on implementing our new plastics cycle strategy, which was announced in 2021, along with our efforts to develop and use sustainable packaging and applications. We have continuously increased our ability to transparently measure progress against interim targets and measure its achievement on an ongoing basis. In 2024, we also rolled out generally mandatory training on sustainability, as well as international social standards with a target level of achievement of at least $95 \%$. Although we continue to anticipate that expectations on the part of the public, NGOs, and our customers will continue to grow in relation to both our environmental protection efforts and our actions as a responsible corporate citizen, we

have downgraded the risk impact. The ESG activities in Consumer business are increasingly assessed by the this external environment and our consumers as very positive and as trend-setting for the industry: We assess the risk as medium and possible.
8. Climate change-related effects along the value chain

The risk of possible impacts of climate change on our entire value chain (from the procurement of critical raw materials to production infrastructure and any transport), which was added last year, continues to exist. The insights from last year's study on risk trends at our own production sites have been incorporated into further packages of measures. Specific measures have been defined in particular to mitigate potential water scarcity. The results of the implemented continuous monitoring of these risks (by the Corporate Sustainability function) were shared in 2024 with Supply Chain and Research \& Development (R\&D). We are also constantly updating our emergency plans for critical infrastructure and supplies so that we can swiftly and fully respond to such situations. We continue to regard the risk as medium and possible.
9. Shortage of talent and skills

The risk of the growing challenge of recruiting and retaining suitable talent and providing all of our individuals with appropriately swift and comprehensive training on new technologies remains. This risk affects both our German locations and our national affiliates, particularly in relation to all tasks with a strong digital component. Beiersdorf is competing here not only with other players in our industry but also with technology firms both large and small. The employer branding program rolled out in 2023 has been subject to continuous performance measurement since 2024. An active presence on social media, including the involvement of all senior managers in our external communications, is continuing, in order to raise Beiersdorf's profile and increase awareness of us as an attractive employer. The newly launched "#BTheLead" program aims to offer optimum working conditions to the best talents to foster their motivation and keep them at Beiersdorf. Partnerships and contacts with universities also serve to build links with qualified potential new employees so that we can prepare them for a career at Beiersdorf through special trainee programs. We have launched training programs to tailor employees' skills to the constantly growing requirements, particularly in relation to digital technology. These cover general and function-specific skills for which our various in-house online academies are responsible. As in previous years, we reviewed our employees' satisfaction using an external, standardized, and anonymous survey, comparing the results both to our own track record and the wider market. The very high satisfaction level of the previous year was maintained. Also given our current attractiveness as an employer, our competitive strength, and the measures, we assess the risk as low and possible.

10. Generative artificial intelligence

The risk continues to exist due to the continuing momentum of the issue of artificial intelligence (AI). As a manufacturer of branded products, Beiersdorf is exposed to particular challenges here. We distinguish between two types of risks: firstly, risks arising from the feeding of data to external models, and secondly, risks arising from the use of these models' output. Internally, the Beiersdorf "ChatGPT" application, initially used for Marketing and R\&D, has now reached a wide variety of departments. We also recently published communication guidelines for using AI for all global brands in the Consumer segment, both as a guide for our own employees and for our agencies. In addition, we have bundled all marketing-related AI tools on one platform so that work on new application processes can be carried out globally in a secure environment with a high level of transparency. In parallel, we are working intensively on a general framework for the further strategic development of AI at Beiersdorf across all functions. We will continue to work on shaping the framework for the safe use of these tools. Due to the increase in application cases, the extent of the risk remains low, but the likelihood of occurrence is raised to possible.

Overview of Relevant Consumer Business Segment Risks and Major Year-on-Year Changes

			Probability	Impact
1) Reputational risks to brands and the company \& employer			Possible	$\uparrow$	Medium
2) Critical Ingredients challenges			Possible		Medium
3) Digitalization acceleration			Possible		Medium
4) Growing global politcal / economic instabilities			Possible		Major
5) Input (RM \& Energy) scarcity			Possible		Major
6) Cyber security threat			Possible		Medium
7) Growing ESG demands			Possible		Medium
8) Climate change induced disruptions on EZE Supply Chain			Possible		Medium
9) Talent scarcity \& capability			Possible		Low
10) Generative AI			Possible	$\uparrow$	Low
Probability of occurence		Financial impact relevant risks		Key deviation vs prior year
Almost certain	$>90 \%$	Severe	$>\in 1,500$ milion	Increase	$\uparrow$
Likely	$>50 \% \cdot 90 \%$	Major	$>€ 500$ milion	Decrease	$\downarrow$
Possible	$>10 \% \cdot 50 \%$	Medium	$>€ 125$ milion
Unlikely	$<10 \%$	Low	$>€ 25$ milion

Material Risks in the tesa Segment

The risk situation for the tesa segment was explicitly included for the first time in 2024, which is why there is no explicit year-on-year comparison. Overall, the risk situation has not changed materially. The following risks, to be classified as material, exist from the Group perspective:

Global economic crisis

Macroeconomic and geopolitical volatility (such as polarization in the USA, tensions between the USA and China) are leading to a decline in industrial production; they are dampening economic sentiment, resulting in a decline in consumer confidence and changes in buying behavior. For tesa, the decline in purchase of automotive and high-end electronics, and subsequently the switch to cheaper products is leading to sales risks. The risk is classified as low and likely.

Restricted market access due to trade wars

Free market access for tesa in key markets (including China and the USA) is restricted due to unforeseen government decisions that affect free trade. The impact could be higher tariffs on exports (e.g., on adhesive tapes to China) or restricted access to raw materials. The risk is classified as low and possible.

Dependence on customers and markets

The risk relates to dependencies on (producer) markets especially for smartphones and on China in general. Alongside strong competition, continuing weak demand in China and increasing market saturation can lead to sales risks. The risk is classified as low and possible.

Functional Risks in the Consumer Segment

We once again had all functional risks evaluated by the global functions during the reporting period. Overall, the risk assessment for topics that are essentially unchanged remains at the previous year's level. To a large extent, there is an overlap with the strategic risks. This particularly applies to the topics of reputation, climate change, sustainability, and procurement. However, there are additional compensatory measures for all of these topics from a purely functional perspective, which we limit to the main activities in the case of strategic risks. One example is the use of procurement contracts with protective clauses to reduce the volatility affecting important raw materials and packing materials in uncertain markets.

We have classed non-conformity in relation to European capital markets law as only a functional risk, for example, specifically as it concerns the risk of insider trading or non-compliance in terms of required adhoc reporting. Here we have been providing regular, target-specific training since many years. We also ensure continuous internal information sharing on potentially relevant ad hoc facts. An ad hoc committee evaluates and documents the information. We assess the risk to be low and possible.

Another purely functional risk, but one that is categorized as relevant, concerns market risk from Investments. Potential default risks relating to the investment of the Group's liquid funds are limited by only making investments with counterparties deemed reliable. Counterparty risk is monitored daily based on ratings and the counterparties' liable capital as well as continuously updated risk indicators. These parameters are used to determine maximum amounts for investments with partner banks and securities issuers (counterparty limits), which are compared with the investments actually made throughout the Group. We have invested most of our liquidity in low-risk investments (such as government/corporate bonds and Pfandbriefe). Our formalized investment strategy is regularly agreed with our internal supervisory body and with the Supervisory Board. Our risk management process includes looking at the conditional value at risk so that even extreme market situations can be simulated, understood, and factored into investment decisions. Our financial risk management is characterized by the clear allocation of responsibilities, central rules for limiting financial risks as a matter of principle, and the conscious alignment of the instruments deployed with the requirements of our business activities. Specific, additional information on the extent of the currency, interest rate, default, and liquidity risks described above can be found in Note 30 of the notes to the consolidated financial statements, "Additional Disclosures on Financial Instruments, Financial Risk Management, and Derivative Financial Instruments." The higher interest rates make our cautious strategy easier to implement. We therefore categorize this risk purely in arithmetical terms as medium but unlikely.

Short-Term Operational Risks and Opportunities for the Consumer Segment

Alongside the short-term impacts of the topics named in the long-term perspective of geopolitical, economic, but also climate change-related risks, the main risks in the Consumer Business Segment continue to lie in the price negotiations with our customers and the response of consumers to higher consumer prices. Negative, economically driven market developments in, among others, Mexico and China could have an impact on our sales. Most of the risks mentioned are, however, already included in the financial forecast. The risk of effects exceeding this are regarded as possible but with a rather low impact.

The key net operational risks currently remaining arise exclusively from legal and tax proceedings and from tax audits, as in the previous period. These risks are prudently quantified by both internal and external experts to the extent possible. Assessing the course and outcome of legal disputes is associated with considerable uncertainty. Based on the information currently available, no material charges are expected for the Group that would be considered probable.

Further information and details on the extent of the risks described here can be found in Note 31 of the notes to the consolidated financial statements, "Contingent Liabilities, Other Financial Obligations, and Legal Risks."

Due to the non-materiality of the risks, neither functional nor operational risks are reported for the tesa Business Segment.

Material Opportunities

Consumer Segment

We see material opportunities in achieving the goals we have set with the new "Win With Care" strategy ahead of schedule. We see these in particular in the following three areas:

Tapping into new markets

We are capturing so-called "white spaces," especially in the area of Face Care, faster and more successfully than anticipated in our forecast. Examples could be our innovations in the field of epigenetics or anti-pigment solutions, where launches in more markets than previously assumed could make a positive contribution to earnings.

Breakthrough innovations

Continuous investments and those made recently in R\&D, especially in the fields of anti-aging and antiacne, are leading earlier than planned to promising or also breakthrough innovation. The opportunity could increase further through the close cooperation between in-house R\&D and external partners.

Acquisitions

Stepping up the search for new potential acquisitions which, by their nature, are heavily influenced by external factors, is leading to success faster than planned.

All three topics are about potential business developments that may lead to a positive earnings development compared to our forecast and to market share gains.

tesa Business Segment

The material opportunities are seen, as in the Consumer Business Segment, in tapping into new markets (e.g., through increased distribution/market launches of "Debonding on Demand" products, in other words, using adhesive tapes instead of conventional adhesives), successful new product developments (e.g., sustainable adhesive tapes), and acquisitions (e.g., acquiring new technologies).

Monitoring of Risks and Opportunities

Formal monitoring of the strategic and functional risks, including corresponding mitigating measures, takes place once a year at Function Board and full Executive Board levels and subsequently in the Audit Committee of the Supervisory Board, in the latter case for both segments. Along with adherence to our risk policy principles, this feeds into every business decision taken at the various levels of our company.

In addition to the above monitoring, operational risks and opportunities are continuously monitored as part of the financial planning, forecasting, and reporting process at the local, regional, and central levels. This ensures that all sales and earnings effects regarded as relatively likely are directly and appropriately incorporated into our financial reporting, taking into account the measures implemented and planned (e.g., recognition of provisions). This is supplemented by a regular review of key financial figures for the Consumer Group companies, led by the Consumer Group Controlling function, Internal Audit, and other relevant controlling functions. The review is designed to enable potentially critical developments to be addressed swiftly and precisely with those involved and corrective action to be initiated where appropriate. Monitoring in the tesa Business Segment is carried out in line with the company's own organizational structure.

The latest information on risk development is thus also fed into the management and planning systems of the corporate units regularly throughout the year and becomes part of the decision-making and control processes. By directly integrating the risk inventory and planning process, the risk management system is continuously developed further, and risk awareness is embedded throughout the company.

Summary of the Risk Situation

For the Consumer segment, the assessment of the likelihood of occurrence of the relevant existing risks has risen slightly compared with the previous year, due to increased risks from reputational damage and generative artificial intelligence. The potential financial implications should the existing relevant risks occur have been reduced overall, due primarily to a variety of responses to the growing ESG requirements. For the tesa Business Segment, the relevant risks continue to exist, as does the risk situation for the most part.

Even considering the updated estimations, there is currently no fundamental change to our assessment of the overall risk situation of the Beiersdorf Group. As in the previous year, this assessment was substantiated by comparing the current quantitatively and qualitatively aggregated total risk portfolio with the very conservatively calculated and broadly unchanged current risk-bearing capacity of the Beiersdorf Group. Risk-bearing capacity has slightly increased, partly due to the Group's further improved liquidity position. This analysis has confirmed Beiersdorf's view that, at the current time, neither the Beiersdorf Group nor individual segments of the business are exposed to any risks that could endanger their continued existence.

Accounting-Related Internal Control System

The aim of the accounting-related internal control system is to implement appropriate principles, procedures, and controls to ensure the correctness and reliability of accounting and financial reporting in the financial statements and management report of the Beiersdorf Group and Beiersdorf AG in line with the legal regulations and relevant accounting standards.

The scope and orientation of the internal control system have been shaped by the Executive Board based on the Group-specific requirements. The accounting-related internal control system consists of the following components: control environment, risk assessment process, control activities, information, communication, and monitoring.

An analysis was used to identify the items and positions containing the material risks for the financial statements. The underlying processes were then assigned to these. Preventive, monitoring, and detective measures designed to ensure security and control in accounting, information processing, and the operational functions have been defined Group-wide for these processes. Among other things, the measures include the separation of functions, manual and IT-based approval processes using the foureyes control principle, IT checks, access restrictions and authorization concepts for the IT system, and systems-based processes for handling Group accounting data. These measures are updated regularly.

Internal and external shared service centers provide uniform handling of the core accounting processes at Beiersdorf AG and most of its affiliates. In some cases, they achieve this with the help of fully automated processes. Standardized IT systems are in place to support financial reporting for the affiliates included in the consolidated financial statements and consolidation. Procedural instructions, standardized reporting formats, and IT-based reporting and consolidation processes support financial reporting.

The consolidated financial statements are based on accounting directives specified by Beiersdorf AG. These guidelines are updated on an ongoing basis through continuous analysis of the relevance and impact of changes in the regulatory environment.

The accounting process and compliance with the control requirements and accounting directives by the companies included in the consolidated financial statements are also regularly reviewed and adjusted if necessary.

It remains the case that even putting in place appropriate, effective systems does not guarantee the correct, complete, and timely recording of information in the accounts with absolute certainty. It is impossible to entirely rule out personal judgments, erroneous controls, criminal acts, or other circumstances. Should these occur, they could limit the effectiveness and reliability of the internal control system.

Adequacy and Effectiveness of the Internal Control and Risk Management Systems ${ }^{16}$

In addition to the accounting-related processes, risk early warning and monitoring systems, and related controls, all of which are continuously and systematically audited by Internal Audit, both centrally and locally, Beiersdorf also has extensive internal rules, regulations, and processes (including interdepartmental processes) in all areas material to ensuring proper and legally compliant operations (e.g., in R\&D, Production and Logistics, Quality Management, and Marketing and Sales, and especially in the innovation process, which involves practically all corporate functions). The rules and regulations are regularly communicated and updated as appropriate. Compliance with them is monitored and training continuously provided. We have developed data collection and control mechanisms for sustainability aspects, too. Internal Audit regularly checks that these are being adhered to. We also further developed the IT system for Risk Management that was implemented in 2023, and which brings together risks in the areas of finance, compliance, and sustainability. The Executive Board deals with the monitoring and control of these systems on an ongoing basis, also in close consultation with Internal Auditing. The Executive Board is regularly advised and monitored by the Audit Committee of the Supervisory Board on issues relating to the appropriateness and effectiveness of the internal control system, the risk management system, and the internal auditing system. This has not resulted in any significant need for adjustment or improvement with regard to these systems. Beiersdorf therefore has no reason to believe that there are inadequate or ineffective internal control and risk management systems in the relevant business areas or in relation to the relevant topics.

Independent Monitoring

The supervisory bodies and the Internal Audit department are integrated into the Beiersdorf Group's internal control system with audit activities that are independent of the Group's operations. Internal Audit systematically evaluates the integrity of financial accounting, the effectiveness of the accountingrelated internal control system and of the risk and opportunity management system, and compliance. As a process-independent organizational unit, it uses a risk-based approach to reviewing the business processes, the systems and controls that have been put in place, and the financial accounting of transactions. The audit findings are used for ongoing enhancement of the company's management and of preventive and detective controls.

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[^0]: ${ }^{16}$ This section is an unaudited part of the combined management report.

In accordance with § 317 (4) HGB and § 91 (2) AktG, the auditor also evaluates the effectiveness of the risk early warning and monitoring system. Internal Audit and the auditor regularly report the audit results to the supervisory bodies.

The Audit Committee of Beiersdorf AG monitors, in particular, the accounting process and the effectiveness of the internal control system, the risk management system, and the internal audit system. Alongside standard reports, in-depth analyses on fundamental and/or currently relevant issues are regularly used for information purposes.

Report on Expected Developments

Expected Macroeconomic Developments ${ }^{17}$

In 2025, the global economy will enter a phase characterized by economic policy uncertainties and geopolitical risks. While the economic policy announcements of the new US government continue to create uncertainty, it remains unclear how far-reaching the planned measures will actually be implemented. The forecast assumes that there will be moderate tariff increases, but not to a degree that will have a massive impact on global trade. Solid economic growth is expected in the USA, which could act as a global anchor of stability. Europe, on the other hand, is likely to continue to struggle with moderate growth momentum in 2025, although the first signs of a slight upturn are becoming visible. In China, the economic recovery remains fragile, despite extensive economic stimulus measures. Global trade growth is likely to be dampened by geopolitical tensions and trade-related uncertainties. Inflation is only falling slowly worldwide. A rapid return to inflation targets is therefore not to be expected, which could underline the need for a longer restrictive monetary policy. Geopolitical conflicts and trade disputes remain significant risk factors.

The European economy is expected to slowly recover from the ongoing weakness in 2025, supported by the ECB's interest rate cuts. This monetary easing is aimed at stimulating the weak economy, but growth is being held back by structural burdens such as high wage settlements and rising production costs. While inflation rates are likely to fall further in the first half of the year, they could pick up again slightly from the middle of the year due to higher consumer spending and structural inflation drivers such as de-globalization. Even if the economy is expected to pick up slightly over the course of the year, overall economic growth will remain below potential.

The German economy is set for a moderate recovery in 2025. Falling energy prices are providing relief for both companies and private households, and the effect of global interest rate hikes is slowly fading. Nevertheless, the economic recovery is likely to be sluggish. The construction industry is likely to remain under pressure and structural challenges will continue to hamper dynamic growth. Overall, a limited upturn is expected in the coming year.

Economic development in the USA in 2025 will be significantly influenced by the political agenda of the new administration. President Trump's focus on protectionist measures such as higher tariffs and a more restrictive immigration policy could stimulate growth in the short term, but fuel inflation and put pressure on international trade relations. At the same time, tax relief and deregulation are likely to stimulate investment, while possible countermeasures by other countries could dampen growth. Inflation remains a key issue, particularly as wages continue to rise significantly. Although the overall inflation rate has eased recently, core inflation is proving tough, particularly in the service sector. The Fed will probably limit its interest rate cuts, even if political pressure for a looser monetary policy is likely to increase.

Following a slight interest rate hike in 2024, the Japanese central bank is expected to continue its cautious tightening of monetary policy in 2025. The inflation rate has approached the target value of $2 \%$ during this period, allowing the central bank to continue to maintain a cautious balance between economic stimulus and price stability. The depreciation of the yen has strengthened the competitiveness of Japanese companies and stimulated the tourism sector, which is expected to further boost the economy in 2025.

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[^0]: ${ }^{17}$ Commerzbank Research - Chartbook January / February 2025.

The economic outlook for the emerging markets in 2025 is mixed, influenced by internal structural problems and external uncertainties. China's economic growth will remain under pressure in 2025 as ongoing trade tensions with the US and increasing geopolitical uncertainties weigh on export markets. The expansion of import tariffs on Chinese products and restrictions on high-tech deliveries are further complicating the situation. At the same time, China is struggling with the consequences of many years of misallocation of resources in the real estate sector and the high level of debt of regional governments. Although the Chinese government is attempting to support the economy through targeted investments in strategic sectors such as green technologies and biotechnology, these measures are not enough to compensate for the weaknesses in the domestic economy. Brazil's economy showed remarkable resilience in 2024. Moderate growth is expected for 2025, supported by a continued accommodative monetary policy and structural reforms. Nevertheless, geopolitical tensions and uncertainties in global demand could have a negative impact on economic development. With the increasing relocation of global supply chains and the pursuit of diversified production locations, Southeast Asian emerging markets are positioning themselves as attractive alternatives. Investments in education and infrastructure as well as reforms to improve the business climate are strengthening their role in the global economy. The Indian economy is likely to continue its growth trajectory, supported by structural reforms and increasing integration into global value chains, which will strengthen export performance. The Middle East faces a number of challenges in 2025. The region could be affected by an expected global oil oversupply, which could push oil prices to a five-year low. This could affect the revenues of oil-producing countries. At the same time, the geopolitical situation remains tense, which increases economic uncertainty.

Procurement Market Trends

We expect supply and demand equilibrium overall in the important markets for materials and services in 2025, with the exception of palm-oil dependent raw materials. These will continue to suffer due to the supply shortage triggered in 2024, with additional pressure due to the EU Deforestation Regulation (EUDR) planned for 30.12.2025. The geopolitical and trade policy uncertainties remain a significant risk factor. The ongoing conflict in Ukraine, the instability in the Middle East, and potentially increased tariffs or export restrictions from the USA may have a considerable impact on global supply chains. China's stricter controls regarding critical raw materials and export strategies could also pose further challenges for the markets.

Sales Market Trends

Amid ongoing economic uncertainty and subdued growth in the Eurozone and the US, market expansion in 2025 is expected to moderate. Pricing is anticipated to remain a positive driver, while volumes normalize across most regions. E-commerce will continue to serve as a key growth pillar for the industry. Our Consumer Business Segment is projected to maintain its growth trajectory, driven by breakthrough innovations in Skin Care and a robust performance in our Core portfolio. Emerging markets are expected to sustain solid momentum, despite signs of market deceleration, while North America is poised for moderate growth. Europe is forecasted to deliver a steady and healthy pace of expansion while Northeast Asia remains a geography of strategic importance for our business operations.

The outlook for the automotive market remains subdued due to supply chain disruptions, changing consumer preferences, and rising production costs. Market development continues to be influenced by inflation, interest rates, geopolitical tensions, as well as the transition to electric mobility and stricter regulations. The forecast for the electronics industry in 2025 shows moderate, innovation-driven growth

despite global challenges. The market environment in 2025 will continue to be characterized by cautious consumer sentiment. A recovery in consumer products, office supplies, and the building industry is not expected until the second half of the year.

Our Market Opportunities

The persistently tense global geopolitical situation will be accompanied by a slow stabilization of price levels in 2025 following a phase of generally high global inflation rates. The main drivers of this easing remain lower commodity and logistics prices, while wage costs are expected to continue to rise. We are strategically well positioned in the Consumer Business Segment and expect to be able to achieve above-market growth through a combination of price adjustments and increased volumes. A focus on skin care products, product innovations, targeted regional expansion and the consistent implementation of our sustainability and digital strategy continue to be our growth drivers. Nevertheless, the challenges of a difficult macroeconomic environment in China, unpredictable developments in the US and political risks, including possible protectionist policies, will have an impact on the market and market development in the coming year.

Thanks to our stable financial structure and robust earnings position, coupled with the commitment of our employees, we are confident about the future. Our internationally successful brand portfolio is supported by extensive research and development activities that are geared toward consumer needs. These innovations are complemented by targeted marketing strategies that promote lasting trust among our customers.
tesa expects moderate growth in 2025. This applies both to business with end consumers and with industrial customers. Close collaboration with customers in Asia, particularly in the electronics industry market, is key to growth. However, the project-based nature of this collaboration continues to pose a high risk of volatility. tesa will continue to invest in product and technology development in 2025, thereby creating a solid basis for future growth. Central economic regions such as China and Europe remain crucial for tesa, while Southeast Asia and India are becoming increasingly important as growth markets.

Business Development

The described challenges in large areas of the world result in a high degree of uncertainty with regard to the outlook for sales markets and our business development.

Independently from the development of the skin care market, we will continue to achieve above-market sales growth. We expect the global skin care market to continue growing in 2025, although at a slower pace than in the prior year. Based on this, we expect organic sales growth in the range of 4-6\% in the Consumer Business Segment. The EBIT margin from ongoing operations (excluding special factors) in the Consumer Business Segment will be 50 basis points above the previous year's level.

Subject to the same uncertainty regarding market development in 2025, particularly with regards to the challenges in the automotive industry, we also expect sales growth above the market in the tesa Business Segment. Based on this, we expect organic sales growth in the range of 1-3\%. The EBIT margin from ongoing operations (excluding special factors) will be around 16\%.

Based on the forecasts of the two business segments, Group organic sales growth is expected to be in the range of $4-6 \%$. We expect the consolidated EBIT margin from ongoing operations (excluding special factors) to be slightly above the previous year's level.

Hamburg, February 7, 2025
Beiersdorf AG
The Executive Board

Other Disclosures

Corporate Governance Statement

The combined Corporate Governance Statement of Beiersdorf AG and the Group ( $\S \S 289 f, 315 d$ Handelsgesetzbuch (German Commercial Code, HGB)) contains the Declaration of Compliance (§ 161 Aktiengesetz (German Stock Corporation Act, AktG)), information on key corporate governance practices and on Executive and Supervisory Board working practices and composition (including information on the company's corporate governance), information on the diversity policy for the Supervisory Board and Executive Board, and information on the statutory requirements for the equal participation of women and men in leadership positions. The auditing of the Corporate Governance Statement by the auditor pursuant to $\S \S 289 \mathrm{f}(2)$ and (5), 315d HGB is limited to determining whether the information has been provided ( $\S 317$ (2) sentence 6 HGB ).

Declaration of Compliance

In December 2024, the Executive and Supervisory Boards issued the Declaration of Compliance with the recommendations of the German Corporate Governance Code in the applicable version dated April 28, 2022 ("Code") in accordance with § 161 AktG. Beiersdorf AG fulfills all the recommendations made in the Code with a small number of exceptions, as well as all the suggestions. There are no Code recommendations that do not apply to Beiersdorf due to overriding legal stipulations. The auditor must promptly inform the Supervisory Board of any facts identified during the audit that reveal an inaccuracy in the Declaration of Compliance submitted by the Executive Board and Supervisory Board and must note these in the audit report. The 2024 Declaration of Compliance was also made permanently accessible to the public on the company's website at www.beiersdorf.com/declaration_of_compliance.

Declaration by the Executive Board and the Supervisory Board of Beiersdorf Aktiengesellschaft on the Recommendations of the "Government Commission on the German Corporate Governance Code" in Accordance with § 161 of the Aktiengesetz (German Stock Corporation Act, AktG)

In financial year 2024, Beiersdorf Aktiengesellschaft complied with, and continues to comply with, all recommendations of the Government Commission on the German Corporate Governance Code in the version dated April 28, 2022 ("Code"), with the following exceptions:

Recommendation G. 10

In accordance with Recommendation G.10, the Executive Board members' variable remuneration shall be predominantly invested in company shares by the respective Executive Board member or shall be granted predominantly as share-based remuneration, taking the respective tax burden into consideration. Granted long-term variable remuneration components shall be accessible to Executive Board members only after a period of four years.

The variable remuneration for the Executive Board, comprising an annual variable bonus on the one hand and a long-term Enterprise Value Component on the other, will not be invested in shares or sharebased instruments but will be paid out solely in cash after the expiry of the applicable bonus period. In this regard, the Supervisory Board believes that, taking due account of the interests of the customers, employees, business partners, shareholders, and other stakeholders, the remuneration system and the financial and non-financial performance criteria underlying the variable remuneration offers sufficient incentive for sustainable and value-oriented development of the company notwithstanding the absence

of any share-based component. At the same time, the remuneration system generates incentive for the Executive Board to pursue and achieve the goals defined in the company's business strategy.

In addition, the long-term variable remuneration components are in principle accessible to Executive Board members only after a multi-year bonus period. Under the current remuneration system, the longterm variable remuneration is linked to a fixed initial bonus period from 2021 until the end of 2024. At the end of this bonus period, the long-term variable remuneration for all retired and serving members of the Executive Board will be settled and paid out after the 2025 Annual General Meeting. Therefore, members of the Executive Board can access such grant amounts of the long-term variable remuneration before a period of four years that were allocated pro rata in the last three years before the end of the bonus period. In the case of one Executive Board member who left before 2024, this applies accordingly to his long-term variable remuneration, which was linked to the appointment period under the remuneration system applicable until 2021 and was paid out after the 2024 Annual General Meeting. From 2025, the long-term variable remuneration will consist of annual tranches, each with a performance period of four years; recommendation G. 10 sentence 2 will therefore be fully complied with in future.

Hamburg, December 2024

For the Supervisory Board

Recilind Puck

Prof. Dr. Reinhard Pöllath
Chairman of the Supervisory Board

For the Executive Board

Vincent Warnery

Chairman of the Executive Board

Astrid Hermann
Member of the Executive Board

Corporate Governance Practices

Beiersdorf AG and the Group (Consumer and tesa Business Segments) pursue the following key corporate governance practices:

Corporate Governance

Good corporate management and supervision (corporate governance) has always been a high priority at Beiersdorf and provides for sustainable value generation. Close, efficient cooperation between the Executive and Supervisory Boards, respect for the interests of shareholders, employees, and other stakeholders, open corporate communication, proper accounting and auditing, compliance with statutory provisions and corporate guidelines, and responsible risk management are the basis of the company's success in this area. Beiersdorf is also aware of its social and environmental responsibility and ensures that its business strategy, sustainability agenda, and operational decisions take this into account. Regular, institutionalized dialog takes place with the aforementioned stakeholders, ranging from analyst and press conferences, Capital Markets Days, symposia and congresses, all the way to volunteering days and social activities.

The German Corporate Governance Code (the Code) ensures transparency with respect to the legal framework for corporate management and supervision and contains accepted standards for good, responsible, and sustainable corporate management. The Code and its amendments did not necessitate any fundamental changes at Beiersdorf. We understand corporate governance as an ongoing process and continuously and carefully develop this understanding, above and beyond the Code as well. We give consideration to comments, suggestions, and criticism from investors and proxy advisors and make changes where appropriate to corporate governance and its reporting in this Corporate Governance Statement.

Compliance

For Beiersdorf AG and the Beiersdorf Group (including tesa), compliance with the law and internal guidelines is an essential prerequisite for successful and sustainable business. The Executive Boards of Beiersdorf AG and tesa SE have issued compliance principles, which can be found at www.beiersdorf.com/investors/compliance/compliance-principles and www.tesa.com/en/about-tesa/ sustainability. Based on our compliance risk analyses, extensive antitrust, anti-corruption, dataprotection, and capital market law compliance programs have been implemented among other measures in order to safeguard compliance. Numerous internal guidelines and processes for preventing legal violations in these areas in particular have been issued. Employees and managers receive awareness-raising information and support on these topics through regular training and a wide variety of advisory offerings.

Information concerning potential compliance violations is followed up consistently. Appropriate measures are taken to prevent and sanction wrongdoing, taking into account the principle of proportionality. In order for us to gather information about potential compliance violations, all employees and managers at Beiersdorf and tesa, as well as external stakeholders such as customers and suppliers, have access to a number of reporting channels. These include a digital whistleblower system via which violations can be reported directly and in confidence - even anonymously, if so desired. The Compliance functions at Beiersdorf and tesa use a range of tools - not least Group-wide reporting - to support the Executive Board and managers in the continuous control, monitoring, and development of the compliance management system and safeguarding of general compliance.

Further, more detailed information on the compliance management system can be found in this Annual Report in the Non-financial Statement of the Beiersdorf Group (Consumer and tesa Business Segments) and Beiersdorf AG in accordance with $\S \S 289$ b (3) HGB in conjunction with 315b (1) and (3) HGB (CSR report).

Code of Conduct

The success of Beiersdorf AG and the Beiersdorf Group (including tesa) is based on the trust placed in us by consumers, customers, investors, and employees. That is why high standards are set when it comes to responsibility - both for the company and for each individual. The Codes of Conduct of Beiersdorf and tesa lay down these standards in a binding set of guidelines that are to be used worldwide. The objectives are to help all employees implement the key principles and values of our company in their everyday working life and to show them how to handle potential issues or difficult situations that affect our business practices or our dealings with each other.

The Beiersdorf and tesa Codes of Conduct are available online at www.beiersdorf.com/investors/ corporate-governance/code-of-conduct and www.tesa.com/en/about-tesa/sustainability/strategy/our-guidelines-and-standards.

Sustainability

Sustainable corporate governance involves minimizing social and environmental risks and leveraging new market opportunities in such a way that value is generated for the company and negative social and environmental impacts are avoided. Beiersdorf was early to recognize the importance of responsible action and has continuously worked to improve its sustainability.

Today, sustainability is a core component of Beiersdorf's "Win with Care" strategy. As part of the strategy, the Consumer Business Segment has been pursuing the CARE BEYOND SKIN sustainability agenda since 2020. This is oriented on the United Nations Sustainable Development Goals (SDGs) and comprises seven focus fields that illustrate our key areas of impact along the entire value chain. We have set ambitious targets in all these areas for 2025 and 2030.

At tesa, too, sustainability is firmly enshrined in the business strategy. The framework for this is formed by five strategic action areas for which tesa has defined long-term targets for the period through 2030. These fields extend across the business segment's entire value chain and are as follows: Reduction of Emissions, Responsible Sourcing, Use of Recycled and Bio-based Materials, Circularity and Reduction of Waste, and Enabling Sustainability at our Customers.

Since the entry into force of the Corporate Sustainability Reporting Directive (CSRD), we have been required to supplement our existing financial reporting with information on key non-financial aspects of our business activities. As of the reporting date, the CSRD had yet to be transposed into German law; in this Annual Report, therefore, key non-financial aspects of our business activities are reported in the Non-financial Statement in accordance with $\S \S 289$ b (3) HGB in conjunction with 315b (1) and (3) HGB.

Human Resources Policies

Beiersdorf's success hinges to a large extent on the hard work, skills, and commitment of its employees. More than 22,000 people all around the world contribute to this success every day by putting their specialist expertise, commitment, and ideas into practice in their field. In doing so, they act as an important stimulus for improvements and innovations.

At Beiersdorf, viable and robust human-resource work with a long-term focus is based on both the "Win with Care" strategy, which highlights people as a critical factor for ensuring the sustained success of the company, and on our Core Values. All of Beiersdorf's human resources decisions are guided by the Core Values, which are shared by all employees across hierarchies, functions, and countries.

In this context, Beiersdorf aims to promote a working environment in which employees can be deployed and continually developed to make the best possible use of their skills and potential. Beiersdorf expects managers to motivate their employees to perform at the highest level. Instilling

excellent leadership skills in the management team is therefore key. This encourages employee commitment and helps Beiersdorf establish itself as one of the most attractive employers in the consumer goods industry.
tesa is an expert in adhesive technology, offering its customers innovative solutions and outstanding service. The company's success is attributable to a large degree to the skills of its employees and their willingness to continuously develop them further. Qualified employees who contribute actively to helping us extend our position as one of the leading companies in adhesive technology are the key to the successful implementation of our business strategy. This is why our human resources strategy is oriented toward winning and retaining well-trained, committed employees for tesa and continually increasing our considerable attractiveness as an employer through appropriate measures. Beyond this, it is tesa's express aim to promote a corporate culture that strengthens performance, teamwork, crossfunctional cooperation, and internationalization.

More detailed information can be found in the "Non-financial Statement" of this Annual Report.

Risk Management

Risk management at Beiersdorf AG and the Beiersdorf Group is an integral part of central and local planning, management, and control processes, and conforms to consistent standards across the Group. Our open communications policy, the risk inventories carried out at regular intervals, and the planning and management system ensure that our risk situation is presented transparently.

Further information can be found in the "Risk Report" section of this Annual Report and in the Annual Report of tesa SE.

Corporate Bodies

Beiersdorf AG is governed by German stock corporation, capital market, and codetermination law, among other things, as well as by its Articles of Association. The company has a dual management and supervisory structure consisting of the Executive Board and the Supervisory Board, as is customary in Germany. The Annual General Meeting of the shareholders is responsible for taking fundamental decisions for the company. These three bodies are all dedicated in equal measure to the good of the company and the interests of all shareholders.

1. Supervisory Board: Composition and working practices

Beiersdorf AG's Supervisory Board consists of 12 members. Half of these are elected by the Annual General Meeting in accordance with the Aktiengesetz (German Stock Corporation Act, $A k t G$ ) and half by the employees in accordance with the Mitbestimmungsgesetz (German Codetermination Act, MitbestG); all members are elected for a maximum period of five years. The most recent regular election took place in financial year 2024. The regular term of office of the shareholder representatives to the Supervisory Board was reduced to four years by the 2024 Annual General Meeting; as such, this term will expire at the end of the Annual General Meeting resolving on the approval of their activities for financial year 2027. The regular term of office of the employee representatives to the Supervisory Board remains five years and thus expires at the end of the Annual General Meeting resolving on the approval of their activities for the financial year 2028. The Annual General Meeting always elects members on an individual basis. No former Executive Board members of Beiersdorf AG serve as Supervisory Board members.

The Supervisory Board appoints, advises, and supervises the Executive Board in matters concerning the latter's management of the company, including sustainability, as laid down by the law, the Articles of Association, and the bylaws. The Supervisory Board and Executive Board work closely together for the good of the company and to achieve sustainable added value. In accordance with the bylaws for the

Executive Board, certain decisions of fundamental importance are subject to Supervisory Board approval. The bylaws for the Supervisory Board are available on the company's website at www.beiersdorf.com/bylaws_supervisory_board.

As a rule, the Supervisory Board makes decisions at its meetings on the basis of detailed documents. The Supervisory Board members may also participate in the meetings via conference calls or video conferencing. The Supervisory Board also meets regularly without the Executive Board to discuss Executive Board and Supervisory Board matters along with strategy, planning, and business performance. In principle, the auditor's presentations on the audit of the financial statements are also held without the Executive Board. Meetings are regularly discussed in advance, partially by the employee and shareholder representatives separately. The Supervisory Board is informed in a regular, timely, and comprehensive manner about all relevant matters. In addition, the Chairman of the Executive Board informs the Chairman of the Supervisory Board regularly and in a timely manner (including between meetings) about important transactions and liaises with him on important decisions. The bylaws provide rules to ensure the supply of high-quality information from the Executive Board. The Chairman of the Supervisory Board coordinates the work of the Supervisory Board, chairs its meetings, and represents the interests of the Supervisory Board externally. Within reason, he discusses Supervisory Board-related topics with investors; in 2023 and 2024, these focused on the composition of the Supervisory Board (including its independence) and Executive Board remuneration.

The Supervisory Board regularly evaluates, sometimes with the help of an external consultant, how effectively the Board and its committees are performing their tasks and decides on measures to improve this performance (efficiency audit and self-assessment). The Supervisory Board conducted a self-assessment most recently in 2023 with the aid of an external consultant. This began by using questionnaires and interviews to analyze the work of the full Board and committees and the cooperation between Supervisory Board and Executive Board. The analysis included a comparison with other companies. The results of these analyses and other considerations formed the topic of further interim discussions and Supervisory Board meetings. Various key topics were discussed in depth. These particularly included: preparation and implementation of Supervisory Board and committee meetings; strategic dialog between Executive Board and Supervisory Board; the composition, profile of skills and expertise, and team development of the Supervisory Board, including length of service (continuity versus change); and the remuneration system. Specific measures were discussed for the areas identified, including optimizing preliminary discussions for Supervisory Board meetings, planning meeting agendas and timings, enhancing the flow of information to the Supervisory Board with additional discussion formats such as strategy workshops and regular deep dives, enhancing the profile of skills and expertise, and improving succession planning.

The members of the Supervisory Board benefit from thorough onboarding meetings and information materials after every new election. In particular, these cover Beiersdorf's history, corporate profile, and organization (including brands and research \& development), the business strategy (including sustainability), business performance and financial reporting, corporate governance, and the rights and duties of Supervisory Board members. In addition, the members of the Supervisory Board ensure that they have sufficient time at their disposal to fulfill their duties and are personally responsible for ensuring they receive the necessary training and further education. Reasonable costs for this purpose are reimbursed by the company. The company provides them with support, such as in the form of internal training events on topics relevant to Supervisory Board work and information on changes in legislation and other developments. In financial year 2024, training events on the subjects of sustainability, risk management, internal auditing, and compliance with capital-market law were held.

a) Composition, profile of skills and expertise, diversity policy, and implementation status The Supervisory Board regularly discusses the company-specific objectives and the profile of skills and expertise for its composition. These objectives reflect the company's international activities, potential conflicts of interest, the number of independent Supervisory Board members, regular limits on age and length of membership for Supervisory Board members, and diversity - especially an appropriate degree of female representation. According to its profile of skills and expertise the Supervisory Board members must collectively possess the knowledge, skills, and professional experience required to properly perform the Board's duties. The objectives and profile of skills and expertise form part of the diversity policy for the composition of the Supervisory Board. The Supervisory Board engaged with the objectives, profile of skills and expertise, and diversity policy most recently in November 2024 and, for the most part, endorsed these. Isolated changes concerned the role of an ESG expert and an increase in the minimum number of skills that must be present within the Supervisory Board according to the profile of skills and expertise. The objectives and the profile of skills and expertise apply until the end of 2027 and will be taken into account in future proposals for election, as they have been in the past.

International focus

All members of the Supervisory Board must be open to the company's international orientation. At least four members should embody this in concrete terms and should therefore have particular international experience due to their activities abroad or their background, for example. At least three members on the shareholder side should have international experience.

Gender diversity

The Supervisory Board's goal is to further strengthen the number and position of women on the Supervisory Board and to maintain a target of at least four female members. At least two women should be shareholder representatives. As a listed company subject to codetermination on a basis of parity, the Supervisory Board needs to be comprised of at least $30 \%$ women and $30 \%$ men under $\S 96$ (2) AktG.

Regular limits on age and length of membership

According to the Supervisory Board bylaws, members should normally retire at the Annual General Meeting following their 72nd birthday, and at the latest after a term of office of 20 years. The goal for the Supervisory Board's composition is that different age groups are adequately represented. The term of office of each Supervisory Board member is disclosed on the company's website at www.beiersdorf.com/boards.

Independent focus

The Supervisory Board should include what it considers to be an appropriate number of independent members on the shareholder side; it should take into account the ownership structure. A Supervisory Board member is not considered to be independent in particular if they or a close family member has personal or business relations with the company, its Executive Board, a controlling shareholder, or an enterprise associated with the latter which may cause a material and not merely temporary conflict of interests. In addition, in line with the recommendations of the Code, the assessment of the shareholder representatives' independence from the company and Executive Board particularly takes into account whether the member themself or a close relative has served as an Executive Board member at Beiersdorf AG in the two years preceding appointment to the Supervisory Board. It further considers whether they have a material business relationship with the company or a dependent company - either directly, or as a shareholder, or in a position of responsibility at a non-Group company - or has had such a relationship in the year preceding the member's appointment. It also takes into account whether the member has a close relative on the Executive Board or has been a Supervisory Board member for more than 12 years.

Considering the fact that Beiersdorf AG is a dependent company within the meaning of $\S 17$ (1) AktG, the Supervisory Board considers it to be adequate if at least three of its members on the shareholder side are independent.

Potential conflicts of interest

All members of the Supervisory Board must inform the Supervisory Board, by way of communication addressed to the Chairman of the Supervisory Board, of any conflicts of interest, in particular those relating to a consulting function or directorship with clients, suppliers, lenders, or competitors of the company. Members of the Supervisory Board must resign their office if faced with material and not merely temporary conflicts of interest. Where involvement of the Supervisory Board is not already required by statutory law, material transactions between the Group and members of the Supervisory Board and their related parties require the approval of the Supervisory Board and must comply with the standards customary in the sector.

Profile of skills and expertise

The Supervisory Board ensures that its members collectively have the knowledge, skills, and professional experience needed to properly perform their duties. In addition to the concrete objectives for its composition, the Supervisory Board has prepared a profile of skills and expertise setting out the particular personal and professional skills and expertise required. In terms of their expertise, the members must, in accordance with § 100 (5) AktG, collectively be familiar with the sector in which the company operates; in addition, there must be at least two members with expertise and experience in each of the following areas in particular:

• Familiarity with the business areas and sectors (consumer goods, beauty and skin/body care, international markets (including emerging markets)
• Marketing and Sales (brand development and management, distribution and retail, communication and media)
• R\&D (innovation management, research and development)
• Supply Chain (supply chains and production)
• Human Resources and organization (personnel development and management, corporate organization, corporate culture, diversity)
• ESG (sustainability, corporate social responsibility, ethics)
• Law and Governance (law, compliance, auditing, regulatory law, corporate governance)
• Digitalization and IT (digitalization, data management, IT and IT security)
• Finance (finance and controlling, accounting and auditing incl. sustainability reporting in each case, risk management and internal control systems)

The Supervisory Board's aim is that all these areas of expertise should be represented among its members in as balanced a way as possible and complement one another. In addition, two different members with special qualifications should take on the designated roles of "independent financial expert" and "ESG expert." In addition to this, every Supervisory Board member should meet the necessary general and personal requirements for fulfilling their duties in terms of education, international professional orientation, international diversity, seniority, reliability, diligence, and availability to the required and appropriate extent.

Diversity officers

Two Supervisory Board members have been appointed as diversity officers in order to develop the targets further and promote diversity on the Supervisory Board. These are Frédéric Pflanz and Barbara Wentzel. Their role is to support the Supervisory Board at every intended election of a shareholder representative to the Supervisory Board, or of a committee member, and to issue a statement together with the Chairman of the Supervisory Board regarding the proposals for election made by the Nomination Committee responsible for this, after consultation with the remaining members of the Supervisory Board. They also support the Company's HR work on diversity issues, which includes working with the Personnel Committee.

Implementation status of targets and the profile of skills and expertise
In addition to a balanced mix of professional skills within the Supervisory Board as a whole, diversity is an important criterion for the selection of Supervisory Board and committee members in the company's best interests. There are currently seven female Supervisory Board members in total: Hilde Cambier, Doris Robben, Kirstin Weiland and Barbara Wentzel as employee representatives, and Donya-Florence Amer, Hong Chow and Uta Kemmerich-Keil as shareholder representatives. The statutory gender quota for the Supervisory Board's composition has therefore been fulfilled. Currently, 58\% of Supervisory Board members are women and $42 \%$ are men. On the employee side, $67 \%$ of members are women and $33 \%$ are men, while on the shareholder side women and men each make up $50 \%$ of the members. In addition to their particular professional skills, all the shareholder representatives embody the idea of international orientation by virtue of their background or extensive international experience. Various nationalities are represented on the Supervisory Board; in addition, members on the shareholder side, in particular, boast an extensive international background through training, studies and/or professional activities, especially in English and French-speaking countries as well as in Asia. Currently, at least three of the shareholder representatives on the Supervisory Board are independent. The Supervisory Board assumes, as a precautionary measure, that a Supervisory Board member belonging to the controlling shareholder should not be regarded as independent. Notwithstanding this, the Supervisory Board believes that relationships to the controlling shareholder do not in themselves pose the risk of a material and permanent conflict of interest; rather, it assumes that the company's interests will largely coincide with those of its majority shareholder given that their business activities do not overlap. Among the shareholder representatives, at least the following active members are independent from the controlling shareholder: Donya-Florence Amer, Hong Chow, and the chair of the Audit Committee Uta Kemmerich-Keil. Recommendation C. 9 sentence 1 of the Code, under which a Supervisory Board consisting of more than six members should have at least two shareholder representatives who are independent of the controlling shareholder, is therefore complied with. Moreover, the Supervisory Board believes that all shareholder representatives are independent of the company and Executive Board. This also applies to the Chairman of the Supervisory Board and Presiding Committee, Prof. Dr. Reinhard Pöllath, despite the fact that he has served on the Supervisory Board for more than 12 years. The Supervisory Board believes that the long-standing experience and knowledge gained by the Chairman of the Supervisory Board at Beiersdorf and a series of other companies remain conducive to the goals of advising and supervising the Executive Board, and coordinating the Supervisory Board's work in a lasting and objective manner. Moreover, given his length of service, there are no circumstances in his specific case that might cause a material and not merely temporary conflict of interests. Going beyond the Code's requirements, the Supervisory Board believes that all employee representatives are independent within the meaning of the Code.

The Chairman of the Supervisory Board and Wolfgang Herz have currently already exceeded the regular age limit of 72, while the Chairman has also exceeded the regular length of membership. Given their knowledge and experience, the Supervisory Board has decided to make reasonable exceptions for these members from the regular limits on age and length of membership. The regular limits on age and length of membership and the rules governing potential conflicts of interest were otherwise complied with.

All members of the Supervisory Board also fulfill the necessary personal competence requirements for their tasks. Moreover, the Supervisory Board members are collectively familiar with the sector in which the company operates. The current status of implementation of the profile of skills and expertise as of the reporting date is set out in the qualification matrix below; this shows that each area of the profile of skills and expertise is covered by at least one member. In addition, Uta Kemmerich-Keil is qualified as an "independent financial expert" and Donya-Florence Amer as an "ESG expert"; further details can be found in the following section on "Committees."

Qualification Matrix for the Supervisory Board

	Amer	Cambier ${ }^{1}$	Chow	Herz	Kemmerich- Keil	Koltze ${ }^{1}$	Papier ${ }^{1}$	Pflanz	Robben ${ }^{1}$	Pöllath	Weiland ${ }^{1}$	Wentzel ${ }^{1}$
General information
Member since	April 2024	April 2024	April 2017	April 2020	August 2022	April 2019	April 2019	April 2019 ${ }^{2}$	April 2024	May 2002	April 2019	April 2024
Independence ${ }^{3}$	$\cdot$	$\cdot$	$\cdot$		$\cdot$	$\cdot$	$\cdot$		$\cdot$		$\cdot$	$\cdot$
Gender	f	f	f	m	f	m	m	m	f	m	f	f
Year of birth	1972	1967	1971	1950	1966	1963	1974	1968	1965	1948	1969	1964
Nationality	German	Belgian	German	German	German	German	German	German- French	German	German	German	Austrian

Skills and expertise

Familiarity with the business areas and sectors	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$
Marketing and sales	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$		$\bullet$
Research and development	$\bullet$	$\bullet$	$\bullet$		$\bullet$				$\bullet$	$\bullet$	$\bullet$
Supply chain	$\bullet$					$\bullet$		$\bullet$	$\bullet$		$\bullet$
Human resources and organization	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$
ESG	$\bullet$	$\bullet$	$\bullet$		$\bullet$				$\bullet$	$\bullet$
Law and governance				$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$		$\bullet$
Digitalization and IT	$\bullet$				$\bullet$		$\bullet$	$\bullet$	$\bullet$		$\bullet$
Finance and accounting			$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$	$\bullet$		$\bullet$	$\bullet$

• Criterion met, based on a self-assessment by the Supervisory Board. With respect to the skills and expertise this includes at least "good knowledge" and thus the ability to comprehend the relevant issues well and make informed decisions on the basis of existing qualifications, knowledge and experience gained in the course of work as a Supervisory Board member and/or training measures taken.

[^0]
[^0]: ${ }^{1}$ Employee representatives.
${ }^{2}$ Previously member of the Supervisory Board from September 2015 until April 2018.
${ }^{3}$ According to the criteria of the German Corporate Governance Code.

b) Committees

The work of the Supervisory Board is performed at, and outside of, the meetings of the full Board as well as in the committees. The committee chairs each regularly report to the full Supervisory Board on the work of their committee at the subsequent Supervisory Board meeting. The Supervisory Board has formed six committees:

Presiding Committee

The Presiding Committee is composed of the Chairman of the Supervisory Board, two additional shareholder representatives, and one employee representative. The Committee prepares meetings and human resources decisions and resolves - subject to the resolution of the full Board specifying the total remuneration - instead of the full Board on the contracts of service for members of the Executive Board and on other issues involving the Executive Board. Finally, it can make decisions on transactions requiring Supervisory Board approval in those cases in which the Supervisory Board cannot pass a resolution in time. The members of the Presiding Committee are as follows: Reinhard Pöllath (Chairman), Wolfgang Herz, Frédéric Pflanz, and Barbara Wentzel.

Audit Committee

The Audit Committee comprises five members in total representing shareholders and employees. At least one member of the Audit Committee is an independent member of the Supervisory Board who has special knowledge, experience, and expertise in accounting (including accounting standards and internal control and risk management systems) and auditing, including sustainability reporting and its audit and assurance. In particular, the Chairwoman of the Audit Committee, Uta Kemmerich-Keil, has pronounced expertise in these areas given her former role as Chief Executive Officer of the international health care business of a global consumer goods company, as well as numerous managerial positions held over many years in finance and controlling departments of a global pharmaceutical company. Moreover, her membership of other supervisory boards, previous work in internal auditing, and international training give her the necessary skills base to effectively evaluate the relevant tasks of the Audit Committee. In addition, at least one other member of the Audit Committee has expertise in the field of auditing. This requirement is met in particular by Frédéric Pflanz given his long experience as Chief Financial Officer at international companies. The Audit Committee prepares decisions of the Supervisory Board, in particular on the annual and consolidated financial statements (including the non-financial statement and sustainability report), the proposal to the Annual General Meeting on the election of the auditors and the auditors for the sustainability report, and the agreements with these auditors (issuing the audit engagement, stipulating the areas of emphasis of the audit, and agreeing on the fee), and provides corresponding recommendations to the Supervisory Board. In close consultation with the auditors, the Audit Committee works on the assessment of audit risk, the audit strategy, and audit planning. The Audit Committee also monitors the auditors' independence, looks at the additional services that the auditors provide in accordance with the guidelines set by the committee for approving non-audit services, and regularly evaluates the quality of the audit and the audit of the non-financial statements. Relevant topics, particularly the progress of the respective audit, are discussed regularly with the auditors, including outside of meetings, with the Chairwoman reporting back to the Committee as necessary. The Audit Committee advises and supervises the Executive Board on questions relating to accounting, the adequacy and effectiveness of the internal control system, the risk management system, and the internal audit system. In addition, it discusses the half-year reports and quarterly statements with the Executive Board before their publication. The members of the Audit Committee are as follows: Uta Kemmerich-Keil (Chairwoman), Jan Koltze, Olaf Papier, Frédéric Pflanz, and Reinhard Pöllath.

Finance Committee

The Finance Committee is composed of the Chairman of the Supervisory Board, two shareholder representatives, and two employee representatives. It monitors corporate policy in the areas of finance, financial control, tax, and insurance. It decides in place of the Supervisory Board on approval for raising

and granting loans, on the assumption of liability for third-party liabilities, and on investment transactions. In addition, the Finance Committee advises and supervises the Executive Board on compliance and on all items assigned to it by the full Board in general or in individual cases. The members of the Finance Committee are as follows: Frédéric Pflanz (Chairman), Uta Kemmerich-Keil, Jan Koltze, Olaf Papier, and Reinhard Pöllath.

Personnel Committee

The Personnel Committee comprises a total of six members representing shareholders and employees. It regularly discusses long-term succession planning for the Executive Board (including the remuneration structure) and addresses the diversity policy for the Executive Board's composition along with the manner of its implementation. It also proposes a target for the proportion of women on the Executive Board as well as a deadline for achieving this. The members of the Personnel Committee are as follows: Frédéric Pflanz (Chairman), Hong Chow, Uta Kemmerich-Keil, Olaf Papier, Doris Robben, and Kirstin Weiland.

Digital \& ESG Committee

The Digital \& ESG Committee comprises a total of six members representing shareholders and employees. It monitors the company's digital strategy, particularly with regard to the effectiveness of digital transformation and of business processes and systems. It also deals with issues such as sustainable corporate governance with reference to ESG criteria, including strategies, objectives and initiatives. The Committee's Chairwoman, Donya-Florence Amer, is a proven expert in both digitalization and sustainability thanks, notably, to her current role as Chief Information Officer of an international company and her previous executive position in a consulting firm for sustainability strategies and solutions in industry and business. She has also completed the University of Cambridge's executive program "Sustainable Leadership - Towards Net Zero Emissions." The members of the Digital \& ESG Committee are as follows: Donya-Florence Amer (Chairwoman), Hilde Cambier, Uta KemmerichKeil, Frédéric Pflanz, Doris Robben, and Barbara Wentzel.

Mediation Committee

The Mediation Committee required under codetermination law consists of the Chairman of the Supervisory Board and the Deputy Chairman, as well as one member elected from among the employee representatives and one member elected from among the shareholder representatives. It makes proposals on the appointment of Executive Board members if the requisite two-thirds majority is not reached during the first ballot. The Mediation Committee has not met for several terms of office. The members of the Mediation Committee are as follows: Reinhard Pöllath (Chairman), Barbara Wentzel, Olaf Papier, and Frédéric Pflanz.

Nomination Committee

The Nomination Committee is composed of the Chairman of the Supervisory Board and three additional shareholder representatives. In accordance with the objectives for the composition and profile of skills and expertise of the Supervisory Board, the Nomination Committee suggests, after extensive preparatory work and detailed discussion, candidates to the Supervisory Board for proposal for election to the Annual General Meeting.

Prior to the new elections to the Supervisory Board by the 2024 Annual General Meeting, the Nomination Committee intensely discussed the requirements laid down by laws, the Code, and its own objectives. In view of the areas of expertise and profiles of the shareholder representatives that existed prior to the new elections, the Nomination Committee expressed its support for maintaining the previous composition, with the exception of one position that will become vacant, and proposing its reelection. The current members of the Nomination Committee are as follows: Reinhard Pöllath (Chairman), Hong Chow, Uta Kemmerich-Keil, and Frédéric Pflanz.

The composition of the Supervisory Board and its committees can be found on our website at www.beiersdorf.com/boards and in the "Beiersdorf AG Boards" section of this report. Up-to-date résumés of the Supervisory Board members can also be found at the web address above.

2. Executive Board: Composition and Working Practices

The Executive Board manages the company on its own responsibility and conducts the company's business. It is obliged to act in the company's best interests and is committed to increasing its sustainable enterprise value. It performs its management duties as a collegiate body with collective responsibility.

The members of the Executive Board are appointed by the Supervisory Board. As a rule, Executive Board members are initially appointed for three years. The duties of the Executive Board are broken down by functions and regions. The schedule of responsibilities constitutes part of the bylaws for the Executive Board; this has been made publicly available on the company's website at www.beiersdorf.com/investor-relations/corporate-governance/management-structure.

The Executive Board develops the corporate goals and the Group's strategy, agrees them with the Supervisory Board, ensures their implementation, and regularly discusses their implementation status with the Supervisory Board. It is responsible for managing and monitoring the Group, for corporate planning including annual and multi-year planning, and for preparing the quarterly statements, the halfyear reports, and the annual and consolidated financial statements. It is also responsible for Group financing. In addition, the Executive Board is responsible for ensuring internal control and risk management that is commensurate with the business activities and risk situation and that also covers the sustainability-related goals relevant to the company. This also includes a compliance management system tailored to the risk situation, through which the Executive Board particularly ensures that statutory provisions and internal corporate guidelines are observed and works toward ensuring that Group companies abide by them (compliance). A description of the principles of this system and a statement on its adequacy and effectiveness can be found in the "Risk Report" and "Non-financial Statement" sections in this Annual Report. The Executive Board provides the Supervisory Board with regular, timely, and comprehensive reports on all questions that are of relevance for the company, particularly also regarding sustainability, and explains discrepancies between the actual course of business and the planning and targets. Certain Executive Board measures and transactions that are of particular significance for the company require the approval of the Supervisory Board or its committees.

The Executive Board passes resolutions in regular meetings that are chaired by the Chairman of the Executive Board. The members of the Executive Board work together in a collegial manner and inform one another on an ongoing basis about important measures and events in their areas of responsibility.

Executive Board members disclose potential conflicts of interest to the Supervisory Board without delay and inform the other members of the Executive Board. Where involvement of the Supervisory Board is not already required by statutory law, material transactions between the Group and members of the Executive Board and their related parties require the approval of the Supervisory Board and must comply with the standards customary in the sector. Sideline activities also require the approval of the Supervisory Board.

The company has taken out a D\&O insurance policy for the members of the Executive Board that provides for a deductible of $10 \%$ on any damage incurred, up to one-and-a-half times the fixed annual remuneration of the Executive Board member concerned.

Diversity policy and succession planning, targets for the proportion of women on the Executive Board and at senior management levels
The Supervisory Board has discussed the diversity of the Executive Board in detail in recent years, both in a general sense and in specific cases. Since 2022, with Astrid Hermann, Nicola D. Lafrentz, and Grita Loebsack, the proportion of women on the Executive Board has stood at $43 \%$. The Board thus not only complies with $\S 76$ (3a) AktG, which requires an Executive Board with more than three members to include at least one woman and one man, but also with the voluntary target for the proportion of women on the Executive Board, which the Supervisory Board increased to 30\% in 2022.

The Supervisory Board continues to seek appropriate representation of women on the Executive Board in the course of any membership changes. It is planned to support this aim using various measures, and especially through clearly communicating a commitment to promoting women in leadership positions, providing systematic personal development measures for women in management (e.g., training courses, coaching, mentoring), changing recruitment and appointment processes, and establishing and promoting networking opportunities for women. Additionally, two Supervisory Board members have been appointed as diversity officers in order to advance and promote diversity on the Executive Board (currently Frédéric Pflanz and Barbara Wentzel). Before the appointment of an Executive Board member, the diversity officers give their view together with the Chairman of the Supervisory Board after consulting the remaining Supervisory Board members. Among other things, the Personnel Committee works on the diversity policy for the Executive Board, including the manner of its implementation.

Another aspect of the diversity policy is that the Executive Board members should collectively have extensive relevant international experience from their years of working abroad or their special expertise in Beiersdorf's key international markets. The bylaws for the Executive Board stipulate that the members of the Executive Board should not normally be aged more than 63 years. All incumbent members of the Executive Board met these criteria in the reporting year. The full Supervisory Board and/or the Personnel Committee will consider further diversity-related criteria for the composition of the Executive Board if it regards them as appropriate and expedient.

The Supervisory and Executive Boards together ensure long-term succession planning. The Personnel Committee in particular discusses succession planning (including the remuneration structure) on a regular basis, taking into account the company's management planning. In 2024, the Personnel Committee worked with the Executive Board particularly on the topics of succession planning (including development plans for new talent and further development programs for current employees), diversity strategy (including KPIs), employer branding, HR planning, and the organization of the HR department. In practice, succession planning works on the basis of a group of potential successors chosen from the two most senior management levels below the Executive Board by the Executive Board member for Human Resources in consultation with global management teams. In addition, the Diversity \& Inclusion Committee, which is made up of the diversity officers from the Supervisory Board, the Chief Human Resources Officer, and other managers from the company, works on the goal of promoting and strengthening a diverse corporate culture, beyond gender diversity and international diversity, using various initiatives and key activities. Succession planning is also incorporated into target-setting for the Executive Board's variable remuneration.

The Executive Board also takes diversity aspects into consideration when appointing senior executives in the company, particularly with regard to ensuring an appropriate degree of female representation. With the Beiersdorf Gender Parity Ambition announced back in March 2021, Beiersdorf is committed to achieving gender parity across all management levels below the Executive Board (management levels 1-4) in the Consumer Business Segment by 2025 at the latest. This gender parity was achieved in September 2023, earlier than planned, and has been maintained ever since; at the end of 2024, 51.9\% of management positions worldwide were held by women. Given the global goal of gender-balancing at management level, the Executive Board's strategy for promoting women at Beiersdorf aims to have a

growing number of female candidates for senior management positions and the Executive Board. Beiersdorf continues to offer special programs for female talents to bring more women into leadership positions. These programs focus on a combination of personal and organizational modules. Beiersdorf works with external partners to integrate relevant expertise and to help create the right climate for sustainable change on this issue. To ensure equal opportunities, Beiersdorf also focuses on removing obstacles that could prevent equal career advancement.

In accordance with § 76 (4) AktG, the Executive Board has set a target of at least $35 \%$ for the share of women at Beiersdorf AG's first management level below the Executive Board, and a target of at least $50 \%$ for the second management level, both to be achieved by/maintained until December 31, 2026. At year-end 2024, the proportion of women was $43.9 \%$ at the first management level and $46.8 \%$ at the second management level.

3. Annual General Meeting

In accordance with the Articles of Association, shareholders exercise their rights both at the Annual General Meeting and outside it. Each share entitles the holder to one vote.

Among other things, the Annual General Meeting passes resolutions on the appropriation of net retained profits, on the formal approval of Executive Board and Supervisory Board members' actions, on the election of the auditors for the financial statements and the sustainability report, and on the company's legal basis, especially amendments to the Articles of Association. The Annual General Meeting passes advisory resolutions on the approval of the remuneration system presented by the Supervisory Board for Executive Board members and on the actual remuneration of the Supervisory Board. It also passes recommendatory resolutions on the approval of the remuneration report for the previous financial year. In addition, the Executive Board will convene an extraordinary General Meeting where it considers this appropriate in individual cases, in the event of significant structural changes, or in case of a takeover offer. At this meeting, shareholders can discuss the issue at hand and resolve on measures under company law if appropriate.

The Ordinary Annual General Meeting takes place each year, generally during the first five months of the financial year. The notice convening the Annual General Meeting and its agenda are also published on the company's website, together with the reports and documentation required for the Annual General Meeting, including the annual report and forms for postal voting. It can also be dispatched electronically together with the associated documents. At least four days before the Annual General Meeting, the report by the Chairman of the Executive Board also appears on the company's website. To assist shareholders in personally exercising their rights, the company offers them the services of a voting representative who votes in accordance with their instructions. The invitation explains how shareholders can issue instructions for exercising their voting rights. In addition, shareholders are free to appoint a proxy holder of their choice as their representative at the Annual General Meeting. It is also possible to submit postal votes, and to issue, change, and revoke proxy instructions to the voting representative appointed by the company, via the internet before and during the Annual General Meeting. The full Annual General Meeting can be followed online, including by non-shareholders.

Based on the authorization issued by the Annual General Meeting, the Executive Board decided in accordance with § 17 (3) sentence 1 of the Articles of Association to hold the 2025 Annual General Meeting as a virtual Annual General Meeting in line with § 118a AktG.

Directors' Dealings

In accordance with Article 19 (1) of the Market Abuse Regulation, the members of the Executive Board and the Supervisory Board are required to notify transactions involving shares in Beiersdorf AG or financial instruments linked thereto (directors' dealings) to the company and the Bundesanstalt für Finanzdienstleistungsaufsicht (Federal Financial Supervisory Authority, BaFin) promptly and no later than three business days after the date of transaction. This also applies to related parties of such persons.

The notifications received by Beiersdorf AG are published and are available on the company's website at www.beiersdorf.com/directors_dealings.

Further Information on Corporate Governance

Detailed information on the work of the Supervisory Board and its committees, as well as on the cooperation between the Supervisory Board and the Executive Board, can be found in the "Report by the Supervisory Board" section of this report. Further information on Executive Board and Supervisory Board remuneration can be found in the "Remuneration Report" section. The remuneration report for the last financial year, including the auditors' report pursuant to $\S 162$ AktG, and the applicable remuneration system pursuant to $\S 87$ a (1) and (2) sentence 1 AktG are published on the website at www.beiersdorf.com/investor-relations/corporate-governance/remuneration-of-executive-board-and-supervisory-board; the latest remuneration resolution of the Annual General Meeting pursuant to § 113 (3) AktG is available at www.beiersdorf.com/investor-relations/annual-general-meeting/archive.

The consolidated financial statements and half-year reports are prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU. The annual financial statements of Beiersdorf AG are prepared in accordance with the Handelsgesetzbuch (German Commercial Code, HGB). In 2024, following a public invitation to tender, there was a change of auditors. The Annual General Meeting on April 18, 2024 elected PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, as the auditors for Beiersdorf AG and the Beiersdorf Group for financial year 2024 and as the auditors for the review of the half-year report 2024. The competent auditor is Thorsten Dzulko. PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft will also perform a limited assurance engagement on the 2024 Nonfinancial Statement. The competent auditor is Claudia Niendorf-Senger.

Current developments and key company information are published on our website www.beiersdorf.com as soon as possible. As well as detailed disclosures on corporate governance at Beiersdorf, the website features additional information on the Executive Board, the Supervisory Board, and the Annual General Meeting, the company's reports (annual reports, including combined management reports and non-financial statements, annual financial statements, remuneration reports, half-year reports, and quarterly statements), a financial calendar with all key events and publications, adhoc disclosures, directors' dealings, and publication of voting right notifications.

This Corporate Governance Statement is a non-audited component of the Combined Management Report. It is also published at www.beiersdorf.com/corporate_governance_statement, where it will be accessible for at least five years.

Report by the Executive Board on Dealings Among Group Companies

In accordance with § 312 AktG, the Executive Board has issued a Report on Dealings among Group Companies that contains the following concluding declaration:
"According to the circumstances known to us at the time transactions were executed or measures were taken or not taken, Beiersdorf Aktiengesellschaft received appropriate consideration for every transaction and has not been disadvantaged by the fact that measures were taken or not taken."

Disclosures Relating to Takeover Law

The disclosures required under § 315a Handelsgesetzbuch (German Commercial Code, HGB) and § 289a HGB are presented below.

Please refer to the notes for the disclosures on the composition of the subscribed capital and the disclosures on direct or indirect interests in the share capital exceeding $10 \%$ of the voting rights.

The appointment and removal from office of members of the Executive Board are governed by $\S \S 84$ and 85 AktG, § 31 Mitbestimmungsgesetz (German Co-determination Act, MitbestG), and § 7 of the Articles of Association. In accordance with § 7 (1) of the Articles of Association, the Executive Board consists of at least three members; apart from this provision, the Supervisory Board determines the number of members of the Executive Board. The Articles of Association may be amended in accordance with $\S \S 179$ and 133 AktG and with $\S 16$ of the Articles of Association. Under $\S 16$ (1) of the Articles of Association, the Supervisory Board is authorized to resolve amendments and additions to the Articles of Association that concern the latter's wording only. Under § 5 (6) of the Articles of Association, the Supervisory Board is authorized in particular to amend and reformulate § 5 of the Articles of Association (Share Capital) following each utilization of authorized or contingent capital.

The Annual General Meeting on April 29, 2020, authorized the Executive Board to increase the share capital with the approval of the Supervisory Board in the period until April 28, 2025, by up to a total of €92 million (Authorized Capital I: €42 million; Authorized Capital II: €25 million; Authorized Capital III: €25 million) by issuing new no-par-value bearer shares on one or several occasions. In this context, the dividend rights for new shares may be determined in deviation from $\S 60$ (2) AktG.

Shareholders must be granted pre-emptive rights. However, the Executive Board is authorized, with the approval of the Supervisory Board, to disapply shareholders' pre-emptive rights in the following cases:

1. To eliminate fractions created as a result of capital increases against cash contributions (Authorized Capital I, II, III);
2. To the extent necessary to grant the holders or creditors of convertible bonds or bonds with warrants issued by Beiersdorf Aktiengesellschaft, or companies in which it holds a direct or indirect majority interest, rights to subscribe for new shares in the amount to which they would be entitled after exercising their conversion or option rights, or after fulfilling their conversion obligation (Authorized Capital I, II, III);
3. If the total amount of share capital attributable to the new shares for which pre-emptive rights are to be disapplied does not exceed $10 \%$ of the share capital existing at the time this authorization comes into effect or - in the event that this amount is lower - at the time the new shares are issued and the issue price of the new shares is not materially lower than the quoted market price of the existing

listed shares at the time when the issue price is finalized, which should be as near as possible to the time the shares are placed. If, during the term of the authorized capital, other authorizations to issue or sell shares in the company or to issue rights that enable or oblige the holder to subscribe for shares in the company are exercised while disapplying pre-emptive rights pursuant to or in accordance with $\S 186$ (3) sentence 4 AktG, this must be counted toward the above-mentioned 10\% limit (Authorized Capital II);
4. In the case of capital increases against non-cash contributions for the purpose of acquiring companies, business units of companies, or equity interests in companies (Authorized Capital III).

The Executive Board may only exercise the above authorizations to disapply pre-emptive rights to the extent that the total proportionate interest in the share capital attributable to the shares issued while disapplying pre-emptive rights does not exceed $10 \%$ of the share capital at the time these authorizations become effective or at the time these authorizations are exercised. If other authorizations to issue or sell shares in the company or to issue rights that enable or oblige the holder to subscribe for shares in the company are exercised while disapplying pre-emptive rights during the term of an authorized capital until such time as it is utilized, this must be counted toward the above-mentioned limit.

The Executive Board was also authorized to determine the further details of the capital increase and its implementation with the approval of the Supervisory Board.

In addition, the Annual General Meeting on April 29, 2020, resolved to contingently increase the share capital by up to a total of $€ 42$ million, composed of up to 42 million no-par-value bearer shares. The contingent capital increase will be implemented only to the extent that:

1. the holders or creditors of conversion and/or option rights attached to convertible bonds and/or bonds with warrants issued in the period until April 28, 2025, by Beiersdorf Aktiengesellschaft, or companies in which it holds a direct or indirect majority interest, choose to exercise their conversion or option rights, or
2. the holders or creditors of convertible bonds giving rise to a conversion obligation issued in the period until April 28, 2025, by Beiersdorf Aktiengesellschaft, or companies in which it holds a direct or indirect majority interest, comply with such obligation,
   and the contingent capital is required for this in accordance with the terms and conditions of the bonds.
   The new shares bear dividend rights from the beginning of the financial year in which they are created as a result of the exercise of conversion or option rights, or as a result of compliance with a conversion obligation.

The Executive Board was authorized to determine the further details of the implementation of a contingent capital increase.

The Annual General Meeting on April 29, 2020, also authorized the company in accordance with § 71 (1) no. 8 AktG to purchase own shares in the total amount of up to $10 \%$ of the existing share capital in the period up to April 28, 2025. The shares shall be purchased via the stock exchange, or via a public purchase offer addressed to all shareholders, or a public invitation to tender shares. The Annual General Meeting authorized the Executive Board to sell in whole or in part the own shares purchased on the basis of the above mentioned or a prior authorization with the approval of the Supervisory Board while disapplying the shareholders' pre-emptive rights, including in a way other than via the stock exchange or via a purchase offer to all shareholders, to the extent that these shares are sold for cash at a price that does not fall materially below the market price of the same class of shares of the company at

the time of the sale. The Executive Board was also authorized to sell in whole or in part the own shares acquired in accordance with the above mentioned or a previous authorization with the approval of the Supervisory Board against non-cash consideration while disapplying the pre-emptive rights of shareholders, particularly to utilize them as consideration or partial consideration in the context of a merger or the acquisition of companies, equity interests in companies (including increases in equity interests), or business units of companies. Moreover, the Executive Board is authorized, with the approval of the Supervisory Board, to utilize these own shares in whole or in part, while disapplying the pre-emptive rights of shareholders, in order to satisfy the subscription and/or conversion rights from convertible bonds and/or bonds with warrants issued by the company or companies in which it holds a direct or indirect majority interest or other claims to the transfer of shares. The Executive Board is further authorized, in the event that own shares are sold to all shareholders, to disapply the pre-emptive rights of shareholders where this is necessary to eliminate any fractions that may arise. The Executive Board may only make use of the above authorizations to disapply pre-emptive rights when utilizing own shares to the extent that the total proportion of shares utilized without pre-emptive rights does not exceed $10 \%$ of the share capital either at the time of the resolution by the Annual General Meeting or at the time these authorizations are exercised. If, during the term of this authorization to utilize own shares, other authorizations to issue or sell shares in the company or to issue rights that enable or oblige the holder to acquire shares in the company are exercised while disapplying pre-emptive rights, this must be counted toward the above-mentioned limit.

Finally, the Executive Board was authorized to retire the own shares acquired in accordance with the above-mentioned or a prior authorization with the approval of the Supervisory Board without requiring an additional resolution by the Annual General Meeting.

The creation of the authorized and contingent capital is intended to put the company in the position of being able to react to growth opportunities and capital market opportunities quickly and flexibly. The authorization to purchase and utilize own shares enables the company in particular to also offer shares in the company to institutional or other investors and/or to expand the shareholder base of the company, as well as to utilize the purchased own shares as consideration or partial consideration for the acquisition of companies, equity interests in companies (including increases of equity interests), or business units, or as part of mergers, i.e. in return for considerations in kind.

In connection with the share buyback program carried out in the period from April 24, 2024, to August 6, 2024, the Executive Board, with the approval of the Supervisory Board, made use of the authorization to retire own shares without an additional resolution by the Annual General Meeting and retired a total of 4,000,000 shares. As part of the share buyback program, the company also made use of the authorization to acquire own shares and acquired a total of 3,604,604 shares.

p. 234 Consolidated Financial Statements
p. 234 Income Statement
p. 235 Statement of Comprehensive Income
p. 235 Balance Sheet
p. 237 Cash Flow Statement
p. 238 Statement of Changes in Equity
p. 239 Notes to the Consolidated Financial Statements
p. 239 Segment Reporting
p. 240 Regional Reporting
p. 241 Material Accounting Policies
p. 254 Consolidated Group, Acquisitions, and Divestments
p. 255 Notes to the Income Statement
p. 260 Notes to the Balance Sheet
p. 291 Other Disclosures
p. 298 Report on Post-balance Sheet Date Events
p. 299 Beiersdorf AG Boards
p. 302 Beiersdorf AG's Shareholdings
p. 309 Attestations
p. 309 Independent Auditor's Report
p. 319 Independent Auditor's Limited Assurance Report
p. 323 Responsibility Statement by the Executive Board

CONSOLIDATED
FINANCIAL
STATEMENTS

Consolidated Financial Statements ${ }^{1}$

Income Statement

(in $€$ million)
	Note	2023	2024
Sales	01	9,447	9,850
Cost of goods sold	02	$-4,031$	$-4,090$
Gross profit		5,416	5,760
Marketing and selling expenses	03	$-3,250$	$-3,461$
Research and development expenses	04	$-320$	$-354$
General and administrative expenses	05	$-570$	$-605$
Other operating income1	06	503	457
Other operating expenses1	07	$-674$	$-503$
Operating result (EBIT)		1,105	1,294
Interest income	08	43	72
Interest expense	08	$-26$	$-45$
Net pension result	08	$-12$	$-10$
Other financial result	08	$-5$	15
Financial result	08	-	32
Profit before tax		1,105	1,326
Income taxes	09	$-356$	$-398$
Profit after tax		749	928
Of which attributable to
- Equity holders of Beiersdorf AG		736	912
- Non-controlling interests		13	16
Basic/diluted earnings per share (in $€$ )	10	3.24	4.05

${ }^{1}$ From 2024, foreign exchange gains and losses are reported separately under "Other operating income" and "Other operating expenses." The previous year's figures have been adjusted accordingly (Other operating income previous year: $€ 263$ million; Other operating expenses previous year: $€-434$ million).

[^0]
[^0]: ${ }^{1}$ Due to the choice of numerical format (in $€$ million), there may be deviations from the amounts actually posted or rounding differences in the calculation of subtotals and final totals. In addition, the percentage changes relate to values in $€$ thousand.

Statement of Comprehensive Income

Profit after tax	2023	2024
Other comprehensive income that will be reclassified subsequently to profit or loss	$-55$	$-36$
Remeasurement of cash flow hedges ${ }^{1}$	$-13$	$-14$
Remeasurement of securities ${ }^{1}$	5	2
Exchange differences	$-47$	$-24$
Other comprehensive income that will not be reclassified subsequently to profit or loss	13	5
Remeasurement of defined benefit pension plans ${ }^{1}$	13	5
Change in fair value of equity instruments measured through other comprehensive income ${ }^{1}$	-	-
Other comprehensive income	$-42$	$-31$
Total comprehensive income	707	897
Of which attributable to
- Equity holders of Beiersdorf AG	696	881
- Non-controlling interests	11	16

[^0]
[^0]: ${ }^{1}$ Net of tax.

Balance Sheet

Assets	Note	Dec. 31, 2023	Dec. 31, 2024
Intangible assets	11	938	888
Property, plant, and equipment	12	2,541	2,719
Non-current securities ${ }^{1}$	16	2,811	2,466
Other non-current financial assets	15	38	151
Nach der Equity-Methode bilanzierte Beteiligungen	15	12	12
Other non-current assets	15	9	9
Deferred tax assets	09	304	325
Non-current assets		6,653	6,570
Inventories	13	1,514	1,612
Trade receivables	14	1,598	1,792
Other current financial assets	15	159	137
Income tax receivables	09	227	250
Other current assets	15	253	282
Current securities ${ }^{1}$	16	1,091	1,159
Cash and cash equivalents	17	1,133	1,207
Non-current assets and disposal groups held for sale	15	1	2
Current assets		5,976	6,441
		12,629	13,011

${ }^{1}$ Securities in the FVOCl category amounting to $€ 136$ million were reclassified from short-term securities to long-term securities (previous year short-term securities: $€ 1,227$ million; previous year long-term securities: $€ 2,675$ million).

Equity and liabilities	Note	Dec. 31, 2023	Dec. 31, 2024
Share capital	19	252	248
Additional paid-in capital	22	47	47
Retained earnings	23	8,315	8,508
Accumulated other comprehensive income	24	$-292$	$-328$
Equity attributable to equity holders of Beiersdorf AG		8,322	8,475
Non-controlling interests	25	17	20
Equity		8,339	8,495
Provisions for pensions and other post-employment benefits	27	350	328
Other non-current provisions	28	150	205
Non-current financial liabilities	29	153	152
Deferred tax liabilities	09	133	135
Non-current liabilities		786	820
Other current provisions	28	629	599
Income tax liabilities	09	152	195
Trade payables	29	2,234	2,571
Other current financial liabilities	29	333	200
Other current liabilities	29	156	131
Current liabilities		3,504	3,696
		12,629	13,011

Cash Flow Statement

(in € million)
	2023	2024
Profit after tax	749	928
Reconciliation of profit after tax to net cash flow from operating activities
Income taxes	356	397
Financial result	-	$-32$
Income taxes paid	$-464$	$-404$
Depreciation and amortization	449	357
Change in non-current provisions (excluding interest components and changes recognized in OCI)	$-27$	20
Gain/loss on disposal of property, plant, and equipment, and intangible assets	$-6$	3
Gross cash flow	1,057	1,269
Change in inventories	43	$-98$
Change in receivables and other assets	$-108$	$-219$
Change in liabilities and current provisions	$-51$	279
Net cash flow from operating activities	941	1,231
Investments in property, plant, and equipment, and intangible assets	$-517$	$-437$
Payments for acquisitions and other investments (net of cash acquired)	-	$-115$
Payments for investments in associated companies and other investments	$-5$	$-6$
Payments to acquire securities	$-509$	$-635$
Proceeds from the sale of property, plant, and equipment, and intangible assets	16	22
Proceeds from the sale of subsidiaries (net of cash disposed) and non-current assets held for sale	23	-
Proceeds from the sale/final maturity of securities	576	942
Interest received	51	70
Proceeds from finance leases	-	4
Proceeds from dividends and other financing activities	24	29
Net cash flow from investing activities	$-341$	$-126$
Free cash flow	600	1,105
Proceeds from loans	16	116
Loan repayments	$-200$	$-269$
Repayments of lease liabilities	$-68$	$-75$
Payments for the acquisition of own shares	-	$-501$
Interest paid	$-19$	$-30$
Other financing expenses paid	$-48$	$-29$
Cash dividends paid (Beiersdorf AG)	$-159$	$-227$
Cash dividends paid (non-controlling interests)	$-14$	$-14$
Net cash flow from financing activities	$-492$	$-1,029$
Effect of exchange rate fluctuations and other changes on cash held	$-55$	$-2$
Net change in cash and cash equivalents	53	74
Cash and cash equivalents as of Jan. 1	1,080	1,133
Cash and cash equivalents as of Dec. 31	1,133	1,207

Statement of Changes in Equity

(in € million)

*The cost of treasury shares amounting to $€ 1,201$ million has been deducted from retained earnings.

Notes to the Consolidated Financial Statements

Segment Reporting

(in € million)		Consumer		tesa		Group
		2023	2024	2023	2024	2023	2024
Net sales		7,780	8,162	1,667	1,688	9,447	9,850
Change (nominal)	(in \%)	9.1	4.9	0.0	1.2	7.4	4.3
Change (organic)	(in \%)	12.5	7.5	3.2	1.9	10.8	6.5
Share of Group sales	(in \%)	82.4	82.9	17.6	17.1	100.0	100.0
EBITDA		1,203	1,300	351	351	1,554	1,651
Operating result (EBIT)		834	1,027	271	267	1,105	1,294
as \% of sales		10.7	12.6	16.3	15.8	11.7	13.1
Operating result (EBIT, excluding special factors) ${ }^{1,2}$		1,002	1,094	266	276	1,268	1,370
as \% of sales		12.9	13.4	16.0	16.3	13.4	13.9
Gross operating capital ${ }^{1}$		5,668	6,152	1,195	1,227	6,863	7,379
Operating liabilities ${ }^{1}$		2,804	3,172	302	306	3,106	3,478
EBIT return on net operating capital ${ }^{1}$	(in \%)	29.1	34.5	30.4	28.9	29.4	33.2
Gross cash flow		807	1,007	250	262	1,057	1,269
Capital expenditure ${ }^{2}$		418	374	99	63	517	437
Depreciation and amortization		369	273	80	84	449	357
Research and development expenses		241	270	79	84	320	354
Employees	(as of Dec. 31)	16,769	17,386	5,189	5,405	21,958	22,791

${ }^{1}$ See the disclosures contained in the section entitled "Notes to the Segment Reporting."
${ }^{2}$ Figures comprise investments in intangible assets and property, plant, and equipment including acquisitions.
${ }^{3}$ The special factors in the Consumer Business Segment amounted to $€-67$ million in 2024 (previous year: $€-168$ million) and in the tesa Business Segment to $€ 9$ million (previous year: $€ 5$ million). The detailed breakdown of special factors by segment is presented in the management report.

The operating result (EBIT) of both business segments in the financial years presented is significantly influenced by the cost of sales and the costs of marketing and sales as the largest expense items. In both years, the higher EBIT return in the tesa Business Segment results from a comparatively significantly lower ratio of marketing and selling expenses, which are largely attributable to the Consumer Business Segment. In a comparison of EBIT returns, this more than offsets the comparatively higher ratio of cost of sales at tesa.

The cost of sales amounted to $€ 3,185$ million (previous year: $€ 3,127$ million) in the Consumer Business Segment and $€ 905$ million (previous year: $€ 905$ million) in the tesa Business Segment. The Consumer Business Segment accounted for $€ 3,136$ million (previous year: $€ 2,934$ million) of marketing and sales costs. The tesa Business Segment accounted for $€ 325$ million (previous year: $€ 316$ million).

Regional Reporting

(in € million)

		Europe		America		Africa/Asia/ Australia		Group
		2023	2024	2023	2024	2023	2024	2023	2024
Net sales ${ }^{1}$		4,135	4,313	2,484	2,567	2,829	2,970	9,447	9,850
Change (nominal) ${ }^{2}$	(in \%)	6.0	4.3	16.8	3.4	2.0	5.0	7.4	4.3
Change (organic) ${ }^{2}$	(in \%)	7.9	4.1	16.8	6.2	10.1	10.1	10.8	6.5
Share of Group sales	(in \%)	43.8	43.8	26.3	26.1	29.9	30.1	100.0	100.0
EBITDA ${ }^{3}$		828	865	174	214	552	572	1,554	1,651
Operating result (EBIT) ${ }^{4}$		648	672	5	133	452	489	1,105	1,294
as \% of sales		15.7	15.6	0.2	5.2	16.0	16.5	11.7	13.1
Operating result (EBIT, excluding special factors) ${ }^{5,7}$		672	681	123	169	473	520	1,268	1,370
as \% of sales		16.3	15.8	5.0	6.6	16.7	17.5	13.4	13.9
Capital expenditure ${ }^{8}$		337	271	107	108	73	58	517	437
Depreciation and amortization		180	193	169	81	100	83	449	357
Employees ${ }^{6}$	(as of Dec. 31)	12,181	12,627	3,987	4,223	5,791	5,941	21,958	22,791

${ }^{1}$ Change in the regional designation of tesa Türkiye from Europe to Asia (previous year Europe: €4,161 million; previous year Africa/ Asia/Australia: €2,802 million)
${ }^{2}$ Change in the regional designation of tesa Türkiye from Europe to Asia (previous year Europe: nominal: 6.7\%, organic: 8.0\%; previous year Africa/Asia/Australia: nominal: $1.0 \%$, organic: $10.1 \%$ )
${ }^{3}$ Change in the regional designation of tesa Türkiye from Europe to Asia (previous year Europe: €834 million; previous year Africa/ Asia/Australia: €546 million)
${ }^{4}$ Change in the regional designation of tesa Türkiye from Europe to Asia (previous year Europe: €654 million; previous year Africa/ Asia/Australia: €446 million)
${ }^{5}$ Change in the regional designation of tesa Türkiye from Europe to Asia (previous year Europe: €678 million; previous year Africa/ Asia/Australia: €467 million)
${ }^{6}$ Change in the regional designation of tesa Türkiye from Europe to Asia (previous year Europe: €12,216 million; previous year Africa/ Asia/Australia: €5,755 million )
${ }^{7}$ See the disclosures contained in the section entitled "Notes to the Segment Reporting."
${ }^{8}$ Figures comprise investments in intangible assets and property, plant, and equipment including acquisitions.

Material Accounting Policies

Information on the Company and on the Group

The registered office of Beiersdorf AG is located at Beiersdorfstrasse 1-9 in Hamburg (Germany), and the company is registered with the commercial register of the Hamburg Local Court under the number HRB 1787. Beiersdorf AG is included in the consolidated financial statements of maxingvest GmbH \& Co KGaA, Hamburg, which, as the parent company, also prepares the consolidated financial statements for the largest and smallest group of consolidated companies in which Beiersdorf AG is included. The consolidated financial statements of maxingvest GmbH \& Co. KGaA are published in the company register.

The activities of Beiersdorf AG and its affiliates ("Beiersdorf Group") consist primarily of the manufacture and distribution of branded consumer goods in the area of skin and body care, and of the manufacture and distribution of technical adhesive tapes.

The consolidated financial statements of Beiersdorf AG for the financial year from January 1 to December 31, 2024, were prepared by the Executive Board on February 7, 2025, and subsequently submitted to the Supervisory Board for examination and approval.

General Principles

The consolidated financial statements of Beiersdorf AG have been prepared in accordance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB), including the IFRS Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) and the supplementary provisions of German commercial law required to be applied under § 315e (1) Handelsgesetzbuch (German Commercial Code, HGB). All IFRSs and IFRICs endorsed by the European Commission and required to be applied as of December 31, 2024 were applied.

The consolidated financial statements were prepared using the historical cost convention. Exceptions to this rule relate to financial instruments assigned to the categories "at fair value through other comprehensive income" (FVOCI) and "at fair value through profit or loss" (FVPL), and derivative financial instruments, which are all measured at fair value.

The consolidated income statement was prepared using the cost of sales method.

Estimates and Assumptions

Preparation of the consolidated financial statements requires management to make estimates and assumptions to a limited extent that affect the amount and presentation of recognized assets and liabilities, income and expenses, and contingent liabilities. Such estimates and assumptions reflect all currently available information. Significant estimates and assumptions were made in particular in relation to the following accounting policies: impairment testing of goodwill and indefinite-lived intangible assets (Note 11 "Intangible Assets"), impairments of financial assets (Note 30 "Additional Disclosures on Financial Instruments, Financial Risk Management, and Derivative Financial Instruments"), the actuarial assumptions for the defined benefit expense as well as for the present value of pension commitments (Note 27 "Provisions for Pensions and Other Post-employment Benefits"), the determination of the amount of eligible deferred tax assets and the Pillar 2 taxes (Note 09 "Income Taxes"), and the recognition of other provisions (Note 28 "Other Provisions"). Given the uncertainty that exists when recognizing the legal risks arising from claims for damages in particular as well as tax and custom risks (Note 31 "Contingent Liabilities, Other Financial Obligations, and Legal Risks"), significant

discretion must be exercised in evaluating whether and to what extent potential damages have arisen and how large the claim could be. In determining the amount of possible damages, there is particular discretion in relation to determining the nature of the factors "overcharge" and "pass-on rate" on which the calculation is based. Furthermore, estimates and assumptions are made in particular when determining the useful lives of intangible assets and property, plant, and equipment, and when measuring inventories.

Other non-financial aspects, such as climate risks, do not currently have a significant impact on the planned cash flows used in the impairment tests.

Actual amounts may differ from these estimates. Changes to estimates are recognized in profit or loss when more recent knowledge becomes available.

Consolidation Principles

Acquisition accounting uses the purchase method, under which the cost of the business combination is allocated to the identifiable assets acquired and identifiable liabilities and contingent liabilities assumed, measured at their fair values at the acquisition date. The cost of an acquisition is the sum of the consideration transferred, measured at fair value at the acquisition date, and the non-controlling interests in the acquiree. For each business combination, the non-controlling interests in the acquiree are measured either at fair value or at the proportionate share of the acquiree's identifiable net assets. Any excess of the cost of the business combination over the acquirer's interest in the net fair values of identifiable assets, liabilities, and contingent liabilities is recognized as goodwill. Costs incurred in the course of the business combination are recognized as an expense.

Profit and equity of subsidiaries attributable to non-controlling interests are presented separately in the consolidated income statement and as a component of equity in the consolidated balance sheet. Losses at a subsidiary are attributed to the non-controlling interests even if this results in a negative balance. In the case of successive purchases of the shares of subsidiaries, the difference between the cost of the new shares and the non-controlling interests previously recognized in the Group for these shares is recognized in other comprehensive income. In a business combination achieved in stages, the effects from acquisition-date fair value remeasurement of previously held equity interests in the acquiree are recognized either directly in equity (FVOCI) or in the income statement (FVPL), depending on their classification. Subsequent adjustments of contingent consideration are recognized in the income statement.

All intercompany balances, transactions, income, and expenses, and gains and losses on intragroup transactions that are contained in the carrying amounts of assets are eliminated in full.

The consolidated financial statements include Beiersdorf AG and the subsidiaries over which it has control within the meaning of IFRS 10. Control over an investee exists if Beiersdorf AG has direct or indirect power over the investee, is exposed to variable returns from its involvement with the investee, and has the ability to affect those returns through its power over the investee.

Currency Translation

The consolidated financial statements have been prepared in euros. The euro is Beiersdorf AG's functional and presentation currency. Unless otherwise stated, all amounts are rounded to millions of euros ( $€$ million). The functional currency of each company in the Group is determined by the primary economic environment in which the company operates. Therefore, the functional currency corresponds to the national currency due to the financial, economic, and organizational independence of the foreign subsidiaries. The items contained in the financial statements of the company concerned are measured using this functional currency. Foreign currency transactions are initially translated at the spot rate at the

transaction date. Non-monetary items that are measured at cost in a foreign currency are translated at the exchange rate as of the transaction date. Exchange differences arising from the translation of monetary items are recognized in profit or loss. Monetary assets and liabilities in foreign currency are translated into the functional currency at the closing rate.

At the balance sheet date, the assets and liabilities of foreign subsidiaries whose functional currency is not the euro are translated into euros at the closing rate. Income and expenses are generally translated at average exchange rates for the financial year. Exchange differences arising from this are recognized as a separate component of equity.

The following table shows the changes in the exchange rates for the currencies material to the consolidated financial statements:

Exchange Rate Changes (€1 )
	Average rates		Closing rates
	2023	2024	2023	2024
Brazilian real (BRL)	5.3867	5.8899	5.3626	6.4275
Swiss franc (CHF)	0.9711	0.9532	0.9257	0.9412
Chinese yuan (CNY)	7.6813	7.7700	7.8520	7.5859
Pound sterling (GBP)	0.8686	0.8447	0.8689	0.8294
Japanese yen (JPY)	153.0488	163.9758	156.3500	163.0500
Mexican Peso (MXN)	19.0661	20.0148	18.7374	21.5429
Thai baht (THB)	37.6977	38.0318	37.9564	35.6775
US dollar (USD)	1.0824	1.0802	1.1052	1.0393

The accounting requirements of IAS 29 Financial Reporting in Hyperinflationary Economies were not applied due to immaterial effect on the Group's net assets, financial position, and results of operations.

Changes in Accounting Policies

Accounting Standards Applied for the First Time in the Current Financial Year

The first-time application of the amended accounting standards had no material impact on the Beiersdorf Group's net assets, financial position, and results of operations.

Classification of liabilities as current or non-current (amendments to IAS 1): These amendments specify the criteria under which liabilities are classified as current or non-current, in particular with regard to the consideration of credit terms.

Non-current liabilities with covenants (amendments to IAS 1): New clarifications have been introduced regarding the conditions to be taken into account when assessing non-current liabilities, such as covenants.

Lease liability in a sale and leaseback transaction (amendments to IFRS 16): The amendments clarify how lease liabilities in sale and leaseback transactions are to be measured, particularly in the event of subsequent changes to the lease.

Supplier financing arrangements (amendments to IAS 7 and IFRS 7): These amendments require additional disclosures on supplier financing programs in order to increase transparency regarding the impact on cash flows and financial liabilities.

OECD Pillar Two model rules: The Group falls within the scope of the OECD Pillar Two Model Rules, which have entered into force in some of the countries in which the Group operates. The following information is therefore included to meet the disclosure requirements:
"Pillar Two taxes" are taxes which result from legislation enacted to implement the Pillar Two framework published by the OECD and apply or have been announced as of the balance sheet date. This tax reform is intended to ensure that large multinational enterprises pay a tax rate of at least $15 \%$ on their income in each country in which they operate. This is ensured by a system of top-up taxes. The Pillar Two framework includes three active mechanisms that can be applied by countries:

• Income Inclusion Rule (IIR)
• Undertaxed Payment Rule (UTPR)
• Qualified Domestic Minimum Top-up Tax (QDMTT)

The ultimate parent entity (UPE) is maxingvest GmbH \& Co. KGaA, based in Germany. Pillar Two legislation came into force in Germany on January 1, 2024.

The Group is making use of the Transitional CbCR Safe Harbour exemption. If Safe Harbour exemptions do not apply in a country, the Group - from the perspective of the UPE - must pay a minimum tax per country in the amount of the difference between the GloBE effective tax rate and the minimum tax rate of $15 \%$. Any top-up tax is always allocated on the basis of German legislation. In countries that have implemented their own top-up tax rules, any top-up tax is allocated on the basis of local regulations.

The Group applies the binding transitional exemption relating to the accounting of deferred taxes that results from the adoption of global minimum taxation and recognizes these taxes as effective tax expense/income at the time they are incurred.

Accounting Standards not yet Applied

The following accounting standards have already been adopted into EU law ("endorsement"), but are not yet applicable in financial year 2024 or have not been voluntarily applied early by the Beiersdorf Group.

Lack of exchangeability (amendments to IAS 21): The amendments set out new guidance on how entities should measure the non-exchangeability of a currency to ensure the reliable measurement of transactions in such situations.

Accounting Standards not yet Adopted Into EU Law

In the financial year 2024, the IASB published the following new standards and amendments to existing standards whose application still requires adoption into EU law. These are not expected to have a material impact on the consolidated financial statements.

Amendments to the classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7): The amendments aim to simplify and clarify the classification rules for financial instruments, particularly for hybrid financial instruments and their measurement.

Presentation and disclosure in financial statements (IFRS 18): IFRS 18 contains new provisions on standardized presentation and disclosure in financial statements, particularly with regard to the aggregation of information.

Subsidiaries without public accountability (IFRS 19): This standard provides relief for subsidiaries that are not publicly accountable by allowing them to reduce certain disclosure requirements.

The IASB has also revised or issued further accounting standards and interpretations that must be applied in future. However, these will have no material effects on the consolidated financial statements.

Material Accounting Policies

Beiersdorf generates its sales solely from contracts with customers for the sale of goods from the Consumer and tesa Business Segments. Sales are recognized when the performance obligation to transfer the products has been fulfilled and control has been transferred to the customers. The time of sales recognition is determined from the contractually agreed delivery conditions or the International Commercial Terms (Incoterms).

Sales are recognized in the amount of the transaction price. This corresponds to the equivalent value of the expected entitlement of Beiersdorf to consideration from the customer for the transfer of the goods. Variable components such as discounts, customer bonuses, and rebates are deducted from the transaction price, as are payments to trading partners if they are not matched by clearly identifiable consideration, the fair value of which can be reliably estimated.

A provision is made in the amount of the expected returns based on past experience and recognized as a reduction in sales. The expected redemption rate for vouchers and loyalty points is also estimated according to the expected value method - based on past experience - and recognized as a reduction in sales.

Cost of goods sold comprises the cost of internally produced goods sold and the purchase price of merchandise sold. The cost of internally produced goods includes directly attributable costs such as the cost of direct materials, direct labor, and energy, as well as production overheads, including depreciation of production facilities. The cost of goods sold also includes write-downs of inventories and operating expenses for distribution centers and freight shipments to customers.

Marketing and selling expenses comprise the costs of sales and marketing departments, expenditure on advertising, retail (point of sale) marketing, and similar items. This item also includes write-downs of trade receivables.

Research costs are recognized in profit or loss for the period. Development costs for new products are capitalized if the recognition criteria laid down in IAS 38 are met. This is normally not the case, as the expected future economic benefits cannot be measured reliably until the products are market ready. Other development costs (e.g., for information systems) are capitalized as an intangible asset on the condition that the recognition criteria of IAS 38 are met. After completion, they are depreciated on a straight-line basis over the planned economic useful life.

Purchased intangible assets such as patents, trademarks, and software are measured at cost. The carrying amounts of finite-lived intangible assets are reduced by straight-line amortization over their expected useful lives. The useful lives, residual values, and amortization methods are reviewed regularly. Goodwill and indefinite-lived intangible assets are not amortized.

Useful Lives of Intangible Assets

Technology	to 14 years
Brand	to 12 years
Customer relationships	to 9 years
Software	to 5 years

Goodwill and intangible assets with an indefinite useful life are not subject to amortization. The estimation of future cash flows is made in the currency in which they are generated. Subsequently, the cash flows must be discounted at a capitalization interest rate appropriate to the currency. The present value of the cash flows is then converted using the spot foreign exchange rate applicable on the valuation date.

Goodwill and indefinite-lived intangible assets are tested for impairment at least once a year; such impairment tests are only conducted for finite-lived intangible assets and property, plant, and equipment if there are indications of impairment. An impairment loss is recognized in profit or loss if the recoverable amount of the asset is lower than its carrying amount. Recoverable amount is identified separately for each asset. If an asset does not generate cash inflows that are largely independent from other assets, recoverable amount is identified on the basis of a group of assets designated as the cashgenerating unit. Recoverable amount is the higher of net realizable value and value in use. Net realizable value is the amount obtainable from the sale of an asset in an arm's length transaction, less the costs of disposal. Value in use is calculated on the basis of estimated future cash flows expected to arise from the continuing use of an asset and its disposal at the end of its useful life, using the discounted cash flow method. Cash flows are derived from the business plans and reflect current developments. They are discounted to the date of the impairment test using capitalization rates for equivalent risks.

If the reasons for an impairment loss recognized in previous years no longer apply, the impairment loss (except for goodwill) is reversed up to a maximum of amortized cost.

With the exception of lease right-of-use assets, property, plant, and equipment is carried at cost and reduced by straight-line depreciation over the assets' expected useful lives. The useful lives, residual values, and depreciation methods are reviewed annually. The following useful lives are generally applied to the depreciation of items of property, plant, and equipment:

Useful Lives of Property, Plant, and Equipment

Buildings	10 to 33 years
Technical equipment and machinery	5 to 15 years
Office and other equipment	3 to 15 years

Production costs of internally manufactured items of property, plant, and equipment are calculated on the basis of attributable direct costs plus an appropriate share of production-related overheads. Interest on borrowings is recognized as a current expense unless it relates to the production of qualifying assets. Repair and maintenance costs for property, plant, and equipment are also expensed as incurred. Substantial renewals or enhancements that materially increase production capacity or significantly extend the useful life of an asset are capitalized. Components that were previously capitalized in this way and replaced by new measures to be capitalized are recognized accordingly as disposals. Government grants reduce the cost of acquisition or production.

Right-of-use assets from leases are reported within property, plant, and equipment. A lease exists if a contract entitles the Group to use an identifiable asset for an agreed period of time in return for payment. At Beiersdorf, leases relate primarily to office space and vehicles.

Lease liabilities are reported within financial liabilities. They are recognized at the inception of the lease at the present value of the lease payments not yet made. Discounting is generally determined using term- and currency-specific incremental borrowing rates.

Lease right-of-use assets are recognized at cost at the commencement of the lease term. The cost of the right-of-use asset comprises the present value of the total expected lease payments less lease incentives received, initial direct costs, and restoration obligations. Subsequent measurement is at amortized cost. Depreciation is on a straight-line basis over the term of the lease.

The term of the lease commences on the date that the asset is made available for use and includes any rent-free periods. In the case of leases that contain both a basic non-cancelable period and extension and termination options, determination of lease terms takes into account all the facts and circumstances that provide an economic incentive for the exercise of extension options or non-exercise of termination options. The exercise or non-exercise of these options is only factored into the lease term if it is reasonably certain to occur.

The leasing standard is not applied to rights held by a lessee under license agreements within the scope of IAS 38. In addition, Beiersdorf has exercised the option not to recognize low-value and shortterm leases on the balance sheet and is instead continuing to treat these as operating expenses over the term of the lease.

In financial year 2024, leases in which Beiersdorf acts as lessor were classified as finance leases within the meaning of IFRS 16 for the first time. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee.

At the inception of the lease, a receivable is recognized in the amount of the net present value of the lease payments plus the unguaranteed residual value of the underlying leased assets. The calculation is made using the interest rate implicit in the lease. This was determined on the basis of the acquisition costs of the underlying leased assets.

The lease receivable is carried forward using the effective interest method. The lessee's lease payments are divided into an interest component, which is recognized in profit or loss, and a repayment of the receivable. The underlying leased assets are no longer recognized in the balance sheet. The lease payments to be collected quarterly are variable and are adjusted annually depending on the index. The amount of the initial lease payments is taken into account when measuring the lease receivable. Any subsequent increases or decreases in payments due to lease adjustments are recognized in profit or loss as incurred.

Inventories are carried at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories is measured using the average cost method. In addition to direct costs, production costs include a proportionate share of material and production overheads as well as production-related depreciation. It also includes the proportionate costs of company pension arrangements and voluntary social benefits, as well as production-related administrative expenses.

Cash comprises bank balances, cash-on-hand, and checks. Cash equivalents are short-term liquid investments that can be converted into a specified amount of cash at any time and are exposed to no more than insignificant fluctuations in value. In accordance with IFRS 9, cash and cash equivalents are measured at amortized costs (AC).

Non-current assets and disposal groups are classified as held for sale if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups held for sale are measured at fair value less costs to sell (level 3) if the value is lower than the carrying amount. The fair value less cost to sell is generally determined on the basis of (ongoing) purchase price negotiations with potential buyers.

The prerequisite for the classification as held for sale is that the assets and disposal groups can be sold in their current condition and that their sale is highly probable. The sale must be considered within one year from the date of classification. Before any assets are reclassified to assets and disposal groups held for sale, the relevant measurement rules for the balance sheet item are applied for the last time. After classification, depreciation is no longer recognized for the assets. Any expense resulting from the application of the above valuation principles in connection with the write-down to fair value less costs to sell is recognized under other operating expenses.

Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or the recognition of equity of another entity. Financial assets and financial liabilities are measured at fair value on initial recognition after deduction of transaction costs if not assigned to the FVPL category. Trade receivables without a significant financing component are stated at the transaction price in accordance with IFRS 15.

Categories of financial assets under IFRS 9

The categorization of financial assets is carried out taking the business model and cash flow properties into consideration.

The "at amortized cost" (AC) category comprises financial assets whose cash flows consist of interest and principal payments and that are held as part of a business model that aims to collect contractual cash flows. Following initial recognition, they are measured at amortized cost less any impairment losses using the effective interest method.

The "at fair value through other comprehensive income" (FVOCI) category comprises financial assets whose cash flows consist of interest and principal payments and that are held as part of a business model that generally aims to hold the assets but also allows them to be sold if required. These assets are measured at fair value. The resulting changes in value are recognized in a separate reserve in other comprehensive income. Upon disposal or impairment of these financial assets, the cumulative gains and losses recognized in equity are recognized in profit or loss. This category also includes equity instruments for which the one-time option to recognize changes in fair value directly in equity has been irrevocably exercised. Subsequent changes in value remain in equity upon disposal or impairment and are not reclassified to the income statement.

The "at fair value through profit or loss" (FVPL) category comprises financial assets that do not fall under the other categories. These assets are measured at fair value. The resulting changes in value are recognized in the income statement.

Financial assets are tested for impairment as of each reporting date. Under IFRS 9, a risk provision is recognized based on the expected credit losses over the next 12 months (expected loss model). The estimate is based on ratings and continuously updated risk indicators. Current CDS spreads and the issuers' bond spreads are also used in the calculation. Impairment of financial assets is immediately recognized in profit or loss. For financial assets in the AC category, the impairment reduces the asset's value on the balance sheet; for financial assets in the FVOCI category, the impairment is recognized in a special reserve in other comprehensive income and does not lead to a reduction in the carrying amount of the financial asset on the balance sheet. A simplified process for determining impairment is used for assets that do not contain a significant financing component (e.g., trade receivables). In this approach, expected credit losses over the entire lifetime of the financial instruments are determined. The estimated impairment on receivables is based primarily on the results of previous payment behaviour and reflects the aging structure, any substantial deterioration in creditworthiness, or a high probability of debtor insolvency, as well as changes in the political and macroeconomic environment. If the payment is more than 90 days late, a detailed analysis of the credit risk is carried out and an appropriate individual value adjustment is taken into account. Given the very short terms (e.g., due on demand) and the creditworthiness of our contractual partners, no impairment is identified based on expected credit losses for financial assets such as cash and cash equivalents.

Financial liabilities, with the exception of lease liabilities and derivative financial liabilities, are initially recognized at fair value and carried at amortized cost (AC) using the effective interest method. Gains and losses resulting from amortization using the effective interest method and from derecognition of liabilities are recognized in profit or loss. Liabilities with remaining contractual maturities of more than twelve months are classified as non-current.

In accordance with IFRS 9, derivative financial instruments used for hedges are not assigned to a separate category; within the Beiersdorf Group, they are subsumed under "derivative financial instruments" (DFI). Derivatives financial instruments not included in a hedging relationship are included in the category "at fair value through profit or loss" (FVPL).

Financial assets and financial liabilities are derecognized when control of the contractual rights is lost, when the obligation specified in the contract is discharged or cancelled, or when it has expired. Liabilities in connection with reverse factoring agreements are not subject to any substantial modification of the contractual terms and therefore continue to be accounted for as trade accounts payable. The payments made are subsequently shown in the statement of cash flows as cash flows from operating activities.

The Beiersdorf Group uses derivative financial instruments to manage current and future currency risks. The instruments concerned are mainly currency forwards. Derivative financial instruments are recognized at fair value. They are reported in the balance sheet in other financial assets or other financial liabilities.

The recognition of changes in the fair values of derivative financial instruments depends on whether these instruments are used as hedging instruments and meet the criteria for hedge accounting under IFRS 9. If the criteria are not met despite the existence of an economic hedge, changes in the fair values of derivative financial instruments are recognized immediately in profit or loss.

For derivative financial instruments designated as hedging instruments that qualify for hedge accounting as a cash flow hedge, the effective portion of the change in the fair value is recognized in other comprehensive income, net of the related tax effect. The ineffective portion is recognized in profit or loss. When the hedged item (underlying) is settled, the effective portion is also recognized in profit or loss. The effectiveness of the hedge relationship is assessed using the critical terms match method.

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring fair value, it is assumed that the underlying transaction on which the price is based takes place in either the principal market or the most advantageous market that the Beiersdorf Group has access to. The price is measured using the assumptions that market participants would base pricing on. All financial instruments recognized at fair value in the financial statements are categorized into the following hierarchy levels in accordance with IFRS 13:

• Level 1: Fair values that are measured using quoted prices in active markets.
• Level 2: Fair values that are measured using valuation techniques whose significant inputs are based on directly or indirectly observable market data.
• Level 3: Fair values that are measured using valuation techniques whose significant inputs are not based on observable market data.

Financial instruments regularly measured at fair value are reassessed at the end of the financial year to determine whether reclassifications have to be made between the levels of the hierarchy.

Provisions for pensions and other post-employment benefits comprise the provisions for defined benefit plans within the Group. Obligations are measured using the projected unit credit method. The expected benefits are spread over the entire length of service of the employees. The actuarial computation of the pension provisions is based on market rates of interest as well as projected wage/ salary and pension increases, and staff turnover trends. Measurement is performed using the relevant local inputs. In Germany, the mortality rate was based on Heubeck's 2018 G mortality tables, while international rates were based on locally recognized mortality tables. The various discount rates used are based on the yields of high-quality corporate bonds with appropriate maturities and currencies and a minimum of an AA rating. Actuarial reports are prepared annually. All assumptions are reviewed for appropriateness at each reporting date.

The amount recognized as a provision comprises the total present value of the defined benefit obligation less the fair value of plan assets available for immediate settlement of obligations. If the fair value of plan assets exceeds the present value of the defined benefit obligation, net assets are only recognized up to the amount of the asset ceiling.

Past service cost is recognized as a component of EBIT in line with the principle of functional allocation, while net interest income is recognized in the financial result. Actuarial gains and losses resulting from changes in actuarial assumptions and deviations between earlier actuarial assumptions and actual developments, as well as from changes in the return on plan assets, are recognized immediately and in full under retained earnings in consolidated equity. They are not recognized in profit or loss later on, but rather remain in consolidated equity.

In the case of defined contribution plans, contributions are made on a statutory, contractual, or voluntary basis to public or private pension insurance plans. The Group does not have any other payment obligations above and beyond the contributions. The contributions are recognized in profit or loss as a component of EBIT.

Other provisions take account of all identifiable future payment obligations, risks, and uncertain obligations of the Group resulting from current legal or constructive obligations arising from past events where the amount of the obligation can be measured reliably. Such other provisions are mainly due within one year. Non-current provisions expected to be settled after more than one year are discounted insofar as the interest effect is material.

Current income tax assets and liabilities for current and prior periods are recognized at the expected amount. The tax rates and tax legislation enacted at the reporting date are used to calculate the amount.

Deferred taxes result from temporary differences between the tax base of assets and liabilities and their carrying amounts in the IFRS balance sheet, and from tax loss carryforwards. Deferred taxes are measured using the balance sheet liability method on the basis of the tax rates expected to be enacted in the individual countries when the temporary differences reverse. These rates are based on the legislation in force at the balance sheet date. No deferred taxes are recognized for differences arising on the initial recognition of assets and liabilities that are not the result of business combinations, affect neither accounting or taxable profit, and do not give rise to equal taxable and deductible temporary differences.

Deferred tax assets in respect of temporary differences, tax loss carryforwards, and tax credits are recognized where it is probable that sufficient taxable profit will be available in future periods against which they can be utilized. Recognized deferred taxes are tested for recoverability every year. Income taxes relating to items recognized in other comprehensive income are not recognized in the income statement but in other comprehensive income.

Current tax assets and liabilities, and deferred tax assets and liabilities, are offset against each other if the Group has a legally enforceable right to offset the actual tax assets against actual tax liabilities and these relate to income taxes levied on the same taxable entity by the same taxation authority.

Summary of Selected Measurement Policies

Balance sheet item	Measurement policy
Assets
Goodwill	Lower recoverable amount and book value
Other intangible assets
indefinite-lived	Lower of cost or recoverable amount
finite-lived	(Amortized) cost
Property, plant, and equipment	(Amortized) cost
Financial assets
"Amortized cost" (AC)	(Amortized) cost
"At fair value through other comprehensive income" (FVOCI)	At fair value through other comprehensive income
"At fair value through profit or loss" (FVPL)	At fair value through profit or loss
Inventories	Lower of cost or net realizable value
Trade receivables	(Amortized) cost
Cash and cash equivalents	(Amortized) cost
Non-current assets and disposal groups held for sale	Lower of (amortized) cost or net realizable value
Equity and liabilities
Provisions
Provisions for pensions and other post-employment benefits	Projected unit credit method
Other provisions	Settlement amount (best estimate)
Financial liabilities	(Amortized) cost
Trade payables	(Amortized) cost
Other liabilities	Settlement amount

Notes to the Cash Flow Statement

The cash flow statement has been prepared in accordance with IAS 7 and is classified into net cash flows from operating, investing, and financing activities.

Net cash flow from operating activities is determined using the indirect method, while net cash flows from investing and financing activities are determined using the direct method.

Cash funds are composed of cash and cash equivalents that can be converted into cash at any time and that are exposed to no more than insignificant fluctuations in value.

Notes to the Segment Reporting

Segment reporting in the Beiersdorf Group is based on the management of business operations. The breakdown of the Group into the Consumer and tesa Business Segments reflects the internal organizational structure and the reporting to the Executive Board and the Supervisory Board.

The Beiersdorf Group measures the success of its segments on the basis of organic sales growth and operating result (EBIT), adjusted for non-recurring, non-operating transactions (EBIT, excluding special factors) in conjunction with the corresponding EBIT margin.

In order to show the global breakdown of business activities in the Beiersdorf Group, information on the geographic regions is presented in addition to the operating segments. The external sales shown for the regions are based on the domiciles of the respective companies.

Group companies domiciled in Germany generated sales of $€ 1,384$ million in 2024 (previous year: $€ 1,450$ million) and reported non-current assets (not including financial instruments, deferred taxes, and plan assets) of $€ 1,628$ million (previous year: $€ 1,577$ million).

Organic sales growth is the nominal sales growth adjusted for exchange rate effects and structural effects from acquisitions and divestments.

EBIT excluding special factors represents the operating result (EBIT), adjusted for non-operating oneoff business transactions.

EBITDA represents the operating result (EBIT) before depreciation, amortization, and impairment losses on property, plant and equipment or intangible assets.

The EBIT margin on net operating capital is the ratio of the operating result (EBIT) to net operating capital.

Gross cash flow is the excess of operating income over operating expenses before any further appropriation of funds.

Net operating capital of $€ 3,902$ million (previous year: $€ 3,757$ million) consists of gross operating capital less operating liabilities. The following table shows the reconciliation of net operating capital to the balance sheet items:

Reconciliation of Net Operating Capital to Balance Sheet Items
(in € million)

Assets	Dec. 31, 2023	Dec. 31, 2024
Intangible assets	938	888
Property, plant, and equipment	2,541	2,719
Inventories	1,514	1,612
Trade receivables	1,598	1,792
Other receivables and other assets (not including tax receivables)	272	368
Gross operating capital	$\mathbf{6 , 8 6 3}$	$\mathbf{7 , 3 7 9}$
Gross non-operating assets	5,766	5,632
Total balance sheet assets	$\mathbf{1 2 , 6 2 9}$	$\mathbf{1 3 , 0 1 1}$

Equity and liabilities	Dec. 31, 2023	Dec. 31, 2024
Other provisions	779	804
Trade payables	2,234	2,571
Other liabilities (not including income tax liabilities)	93	102
Operating liabilities	$\mathbf{3 , 1 0 6}$	$\mathbf{3 , 4 7 7}$
Equity	8,339	8,495
Non-operating liabilities	1,184	1,039
Total balance sheet equity and liabilities	$\mathbf{1 2 , 6 2 9}$	$\mathbf{1 3 , 0 1 1}$

Consolidated Group, Acquisitions, and Divestments

Consolidated Group

In addition to Beiersdorf AG, the consolidated financial statements include 16 (previous year: 15) German and 168 (previous year: 169) international companies whose financial and business policies Beiersdorf AG is able to control either directly or indirectly.

In the year under review, three new companies were included in the consolidated financial statements. There were no business combinations. In addition, three companies were wound up. No company was sold.

Scope of Consolidation

	2023	2024
As of January 1	$\mathbf{1 8 5}$	$\mathbf{1 8 4}$
Additions	3	3
Mergers	-	-
Disposals	4	3
As of December 31	$\mathbf{1 8 4}$	$\mathbf{1 8 4}$

Subsidiaries that, due to their limited business activities, are of minor significance to the Group and to providing a true and fair view of the net assets, financial position and results of operations are generally not included in the consolidated financial statements. Shares in subsidiaries are valued at acquisition cost less any impairment losses. These subsidiaries account for less than $0.5 \%$ of total revenues, less than $0.5 \%$ of EBIT and less than $0.5 \%$ of total after-tax profits. The same subsidiaries account for less than $0.5 \%$ of total equity.

Beiersdorf AG's Shareholdings

Disclosures of Beiersdorf AG's shareholdings are made in the section Beiersdorf AG's Shareholding List. The list shows those companies/equity interests in which Beiersdorf AG holds 5\% or more of the shares and/or voting rights.

Significant Acquisitions

No acquisitions that led to a business combination were made during the 2024 financial year.

Significant Divestments

There were no divestments in the Group in the reporting year.

Exercise of Exemption Options

The following German affiliates included in the consolidated financial statements of Beiersdorf AG exercised the exemption option under $\S 264$ (3) HGB in financial year 2024:

• Beiersdorf Manufacturing Hamburg GmbH, Hamburg
• Beiersdorf Manufacturing Berlin GmbH, Berlin
• Beiersdorf Manufacturing Waldheim GmbH, Waldheim
• La Prairie Group Deutschland GmbH, Baden-Baden
• Beiersdorf Shared Services GmbH, Hamburg

Notes to the Income Statement

01 Sales

Sales amounted to $€ 9,850$ million in financial year 2024 (previous year: $€ 9,447$ million). A detailed breakdown of sales and their development by Business Segment and geographical region is provided in the segment and regional reporting.

02 Cost of Goods Sold

The cost of goods sold amounted to $€ 4,090$ million (previous year: $€ 4,031$ million). This item includes disposed inventories of $€ 3,461$ million (previous year: $€ 3,462$ million) expensed in the reporting period as well as direct expenses for distribution logistics. Write-downs on inventories amounted to $€ 91$ million in the reporting period (previous year: $€ 94$ million).

03 Marketing and Selling Expenses

Marketing and selling expenses were $€ 3,461$ million (previous year: $€ 3,250$ million). The item includes expenditure on advertising, retail (point of sale) marketing, and similar items amounting to $€ 2,257$ million (previous year: $€ 2,076$ million).

04 Research and Development Expenses

Research and development expenses totaled $€ 354$ million (previous year: $€ 320$ million). Research and development expenses in the Consumer business were $€ 270$ million (previous year: $€ 241$ million). Research and development expenses in the tesa business area amounted to $€ 84$ million (previous year: $€ 79$ million).

05 General and Administrative Expenses

General and administrative expenses amounted to $€ 605$ million in the past fiscal year (previous year: $€ 570$ million). This item comprises personnel expenses and other administration costs, as well as the cost of external services that are not allocated internally to other functions.

06 Other Operating Income

(in $€$ million)

	2023	2024
Foreign exchange gains on operating activities ${ }^{1}$	240	193
Gains on disposals of property, plant, and equipment, and other assets	13	38
Income from the reversal of provisions	73	99
Miscellaneous other income	177	127
	$\mathbf{5 0 3}$	$\mathbf{4 5 7}$

${ }^{1}$ From 2024, foreign exchange gains and losses are reported separately under "Other operating income" and "Other operating expenses." The previous year's figures have been adjusted accordingly (Other operating income previous year: $€ 263$ million).

Gains on disposals of property, plant, and equipment, and other assets mainly resulted from the sale of a property at the former Beiersdorf headquarters in Hamburg to TROMA Alters- und Hinterbliebenenstiftung for $€ 33$ million. Income from the reversal of provisions resulted, among other things, from provisions for personnel, litigation risk and other provisions that were not required. These mainly include $€ 10$ million for the reversal of provisions for customs risks in China in the tesa division. Other income includes income from the reversal of deferred liabilities that are not required as well as valuation allowances on receivables and other non-periodic income.

07 Other Operating Expenses

(in € million)

	2023	2024
Restructuring expenses	31	61
Foreign exchange losses on operating activities ${ }^{1}$	287	209
Losses on disposal of non-current assets	6	8
Amortization and impairment of intangible assets from acquisitions	179	60
Miscellaneous other expenses	171	165
	$\mathbf{6 7 4}$	$\mathbf{5 0 3}$

${ }^{1}$ From 2024, foreign exchange gains and losses are reported separately under "Other operating income" and "Other operating expenses". The previous year's figures have been adjusted accordingly (Other operating expenses previous year: $€ 434$ million).

Restructuring expenses relate in particular to measures in the supply chain organization and other ongoing reorganizations of the Consumer business. The amortization and impairment of intangible assets from acquisitions show essentially amortization of the goodwill of the Chantecaille cashgenerating unit in the amount of $€ 38$ million (previous year: $€ 160$ million) and an impairment of $€ 5$ million (previous year: $€ 5$ million) on the remaining intangible assets allocated to the tesa nie wieder bohren GmbH cash-generating unit from the purchase price allocation. There was also amortization of goodwill in the amount of $€ 3$ million (previous year: $€ 4$ million) for the tesa nie wieder bohren GmbH unit. In addition, brand rights amounting to $€ 6$ million were impaired in connection with the realignment of the China business, as these are no longer used.

Miscellaneous other expenses included expenditure of $€ 7$ million (previous year: $€ 8$ million) in connection with the "Care Beyond Skin" donation program and expenditure of $€ 7$ million (previous year: $€ 7$ million) relating to the integration of the newly acquired Chantecaille business. Other expenses also include additions to provisions for legal and other risks and other operating expenses.

At present, climate risks have no material impact on the impairment tests of the assets or the consolidated financial statements.

08 Financial Result

(in $€$ million)

	2023	2024
Interest income - securities in the AC category	15	31
Interest income - securities in the FVOO category	2	5
Interest income - lease receivables	-	2
Other interest income	26	34
Interest income	$\mathbf{4 3}$	$\mathbf{7 2}$
Interest expense	$\mathbf{- 2 6}$	$\mathbf{- 4 5}$
Net pension result	$\mathbf{- 1 2}$	$\mathbf{- 1 0}$
Result from securities in the FVPL category	52	52
Other financial income	132	180
Other financial expense	$\mathbf{- 1 8 9}$	$\mathbf{- 2 1 7}$
Other financial result	$\mathbf{- 5}$	$\mathbf{1 5}$
	$\mathbf{-}$	$\mathbf{3 2}$

Other interest income primarily resulted from "cash and cash equivalents." In addition, interest income also includes income relating to tax reassessments. Overall, $€ 57$ million of interest income can be allocated to financial instruments in the AC category (previous year: $€ 40$ million). Interest expense includes, among other things, interest expenditure relating to tax reassessments as well as interest expenditure from lease liabilities. The pension result includes expenses from the compounding of the net pension obligation entered into in previous years. Other financial income and other financial expense mainly comprise exchange rate gains and losses in connection with financial transactions. Exchange gains and losses in connection with other financial instruments are recorded in other operating income and other operating expenses.

Q9 Income Taxes

Income tax expense including deferred taxes can be broken down as follows:
(in $€$ million)

	2023	2024
Current income taxes
Germany	109	159
International	307	267
	$\mathbf{4 1 6}$	$\mathbf{4 2 6}$
Deferred taxes	-60	-28
Income taxes	$\mathbf{3 5 6}$	$\mathbf{3 9 8}$

Reconciliation to Effective Income Tax Expense

Given an effective tax rate of $30.0 \%$ (previous year: $32.2 \%$ ), the effective income tax expense is $€ 65$ million (previous year: $€ 106$ million) higher than the expected income tax expense. The expected tax rate is calculated as the weighted average of the tax rates of the individual Group companies and amounts to $25.1 \%$ (previous year: $22.6 \%$ ). In income taxes, the Group recognized a current tax expense of $€ 1$ million (previous year: $€ 0$ million) for the top-up tax in connection with global minimum taxation. Of the deferred tax benefit of $€ 28$ million (previous year: $€ 60$ million), $€ 10$ million (previous year: 7 million) related to loss carryforwards and $€ 18$ million (previous year: $€ 53$ million) to temporary differences.

The following table shows the reconciliation of expected to effective income tax expense:

Effective Income Tax Expense

(in € million)

	2023	2024
Expected income tax expense given a tax rate of $25.1 \%$ (previous year: $22.6 \%$ )	250	333
Prior-year taxes	12	17
Decrease in tax expense due to tax-free income	$-24$	$-14$
Increase in tax expense due to non-tax-deductible impairment of goodwill	9	3
Increase in tax expense due to other non-deductible expenses ${ }^{1}$	106	71
Decrease in tax expense due to the utilization/recognition of previously unrecognized tax loss carryforwards	$-17$	$-16$
Increase in tax expense due to non-recognition of tax loss carryforwards	19	21
Tax rate changes	-	$-5$
Other tax effects ${ }^{1}$	1	$-12$
Effective income tax expense	356	398

${ }^{1}$ Tax increases due to non-creditable withholding tax amounting to $€ 41$ million, which were reported under Other tax effects in the previous year, are now shown under Increase in tax increases due to other non-deductible expenses.

No deferred tax assets have been recognized for tax loss carryforwards and unused tax credits of $€ 275$ million (previous year: $€ 271$ million), whose expiration dates are given below.

Expiration Dates of Tax Loss Carryforwards and Unused Tax Credits
(in € million)

	Dec. 31, 2023	Dec. 31, 2024
Expiration date within
1 year	-	5
2 years	9	13
3 years	12	14
more than 3 years	90	107
Unlimited carryforward period	160	136
	$\mathbf{2 7 1}$	$\mathbf{2 7 5}$

Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits. Total deferred tax assets of $€ 49$ million (previous year: $€ 49$ million) were recognized for companies that had posted losses in the current or previous years. Given the positive assessments of future business development, it is assumed there is a reasonable probability that future taxable income will be sufficient to allow utilization of the deferred tax assets. The assessment considers structural measures, as well as the profits achieved in the past and those expected in the future. In the current year, no deferred taxes were recognized for temporary differences of $€ 37$ million (previous year: $€ 27$ million) because positive tax results at the reporting date make it unlikely that they will be used in the foreseeable future.

Deferred taxes relate to the following balance sheet items and matters:

Allocation of Deferred Taxes
(in € million)

	Deferred tax assets		Deferred tax liabilities
	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024
Non-current assets ${ }^{1}$	37	42	111	118
Inventories	53	58	11	9
Receivables and other current assets ${ }^{1}$	26	38	40	29
Provisions for pensions and other post-employment benefits	39	34	67	50
Other provisions ${ }^{1}$	89	106	3	2
Liabilities ${ }^{1}$	153	91	9	8
Retained earnings	-	-	29	15
Loss carryforwards	44	52	-	-
	441	421	270	231
Offset deferred taxes ${ }^{1}$	$-137$	$-96$	$-137$	$-96$
Deferred taxes recognized in the balance sheet	304	325	133	135

${ }^{1}$ Prior-year figures adjusted due to a change in the accounting allocation.

Total net deferred tax assets amounted to $€ 190$ million for the year under review (previous year: $€ 171$ million). Of the year-on-year increase of $€ 19$ million (previous year: increase of $€ 50$ million), $€ 2$ million was recognized directly in equity or other comprehensive income, increasing equity (previous year: decrease in equity of $€ 4$ million). The change in the deferred taxes recognized directly in other comprehensive income included $€ 6$ million (previous year: $€ 6$ million) in provisions for cash flow hedges, $€-2$ million (previous year: $€-2$ million) in provisions for debt instruments measured at FVOCI, and $€-2$ million (previous year: $€-8$ million) for the remeasurement of pensions recognized in retained earnings. Income of $€ 28$ million (previous year: $€ 60$ million) was recognized in profit or loss. Currency effects decreased this item by $€ 11$ million (previous year: decrease of $€ 6$ million).

Deferred taxes are not recognized for retained earnings at foreign affiliates, as these profits are intended to be reinvested indefinitely in those operations from today's perspective. These temporary differences, for which no deferred taxes were recognized, amounted to $€ 6,185$ million (previous year: $€ 5,135$ million). Where distributions are planned, their tax consequences are deferred. The liability is calculated based on the withholding tax rates applicable in each case, taking into account the German tax rate applicable to distributed corporate dividends, where appropriate. Deferred tax liabilities of $€ 15$ million (previous year: $€ 29$ million) were recognized for this in the reporting period.

Some of our subsidiaries are currently subject to tax audits. In accordance with IFRIC 23, disputed tax items are recognized at their most probable cash outflow.

Income tax receivables at the balance sheet date are the result of refund claims and receivables recorded in connection with uncertain tax positions in accordance with IFRIC 23. In one case, a recorded liquidation loss was not recognized for tax purpose by the tax authorities in Austria. We filed appeals against the tax notices for the affected years. We are confident that our view will prevail in legal proceedings. However, a final decision cannot be expected for several years. For this case we have income tax receivables totalling $€ 45$ million (previous year: $€ 45$ million) recorded.

10 Basic/Diluted Earnings per Share

Earnings per share for 2024 amounted to $€ 4.05$ (previous year: $€ 3.24$ ). The basis for calculation is profit after tax excluding profit attributable to non-controlling interests.

When calculating earnings per share for financial year 2024, we used a weighted average of the shares in circulation due to the share buyback program and the necessary retirement of treasury shares. We determined this weighted average on the basis of the share buybacks. The number of shares in circulation was $226,818,984$ as of January 1, 2024. As of December 31, 2024, the number of shares issued less treasury shares was $223,214,380$. Based on the buybacks, the weighted average number of shares in circulation is $224,959,424$. In the previous year, $25,181,016$ treasury shares were deducted from the $252,000,000$ shares issued. The remaining $226,818,984$ shares were used as the basis for calculating the previous year's earnings per share.

As there are no outstanding financial instruments that can be exchanged for shares, there is no difference between diluted and basic earnings per share.

Notes to the Balance Sheet

11 Intangible Assets

Cost (in $€$ million)
	Finite-lived intangible assets	Indefinite-lived intangible assets	Goodwill	Total
Jan. 1, 2023	530	243	800	1,573
Currency translation adjustment	$-3$	-	$-19$	$-22$
Acquisitions	-	-	-	-
Divestments	-	-	-	-
Additions	41	-	-	41
Disposals	$-7$	-	$-6$	$-13$
Transfers	9	-	$-3$	6
Dec. 31, 2023/Jan. 1, 2024	570	243	772	1,585
Currency translation adjustment	6	-	37	43
Acquisitions	-	-	-	-
Divestments	-	-	-	-
Additions	5	-	-	5
Disposals	$-3$	-	-	$-3$
Transfers	4	-	-	4
Dec. 31, 2024	582	243	809	1,634

Amortization/Impairment Losses
(in € million)

	Finite-lived intangible assets	Indefinite-lived intangible assets	Goodwill	Total
Jan. 1, 2023	$\mathbf{3 7 8}$	$\mathbf{5 0}$	$\mathbf{3 4}$	$\mathbf{4 6 2}$
Currency translation adjustment	-1	-	-1	-2
Acquisitions	-	-	-	-
Divestments	-	-	-	-
Additions	37	-	161	198
Disposals	-5	-	-6	-11
Transfers	-	-	-	-
Dec. 31, 2023/Jan. 1, 2024	$\mathbf{4 0 9}$	$\mathbf{5 0}$	$\mathbf{1 8 8}$	$\mathbf{6 4 7}$
Currency translation adjustment	3	-	10	13
Acquisitions	-	-	-	-
Divestments	-	-	-	-
Additions	41	6	42	89
Disposals	-3	-	-	-3
Transfers	-	-	-	-
Dec. 31, 2024	$\mathbf{4 5 0}$	$\mathbf{5 6}$	$\mathbf{2 4 0}$	$\mathbf{7 4 6}$

Carrying Amounts
(in $€$ million)

	Finite-lived intangible assets	Indefinite-lived intangible assets	Goodwill	Total
Dec. 31, 2023	$\mathbf{1 6 0}$	$\mathbf{1 9 3}$	$\mathbf{5 8 5}$	$\mathbf{9 3 8}$
Dec. 31, 2024	$\mathbf{1 3 2}$	$\mathbf{1 8 7}$	$\mathbf{5 6 9}$	$\mathbf{8 8 8}$

Goodwill and Intangible assets
The carrying amounts of goodwill decreased by $€ 17$ million compared with the previous year to $€ 569$ million (previous year: $€ 585$ million).

The change compared to the previous year is mainly due to the impairment in the amount of $€ 38$ million for the Chantecaille group of cash-generating units. The reduction in goodwill and intangible assets is also due to the write-off of nie wieder bohren in the amount of $€ 8$ million and the impairment of trademark rights in the amount of $€ 6$ million. The other goodwill of the cash-generating units or groups of cash-generating units, as well as the growth rates and the cost of capital, are shown in the following overview:

Goodwill

Consumer	Dec.31, 2023 Goodwill in € million	Dec. 31, 2024 Goodwill in € million ${ }^{1}$	CGU/Group of CGUs	Growth rate 2023 in $\%^{2}$	Growth rate 2024 in $\%^{2}$	WACC before taxes 2023 in $\%$	WACC before taxes 2024 in $\%$
Chantecaille	300	279	Group of CGUs	2.5	2.5	10.0	9.7
North America	162	171	CGU	1.0	1.0	10.2	9.9
BDF Switzerland	63	62	CGU	1.0	1.0	5.8	5.2
Swiss Cosmetics Production	12	12	Group of CGUs	1.0	1.0	7.7	7.4
BDF Turkey	2	1	CGU	13.6	13.6	36.3	31.5
S-Biomedic	33	33	Group of CGUs	1.0	1.0	12.6	10.8
tesa
Functional Coatings	10	11	CGU	1.0	1.0	11.9	13.3
Nie wieder bohren	3	-	CGU	1.0	1.0	13.9	12.9

${ }^{1}$ In addition to the value adjustments, there are also exchange rate effects compared to the previous year.
${ }^{2}$ This is due to growth in the selective cosmetics market.

In the course of the realignment of the China business, minor write-downs were also recognized on property, plant and equipment; in this context, brand rights amounting to $€ 6$ million and minor assets under property, plant and equipment were also written down as they are no longer used. The impairment resulting from the impairment test is recognized in other operating expenses and is attributable to the Consumer Business Segment. The trademarks from the acquisition of the Coppertone business of $€ 188$ million (previous year: $€ 194$ million) are established in its markets and will continue to be advertised in future. The trademark rights therefore represent intangible assets with an indefinite useful life.

The trademark rights and customer relationships acquired as part of the Chantecaille acquisition were classified in full as intangible assets with finite useful lives. They are amortized over their useful lives. As at the reporting date, the carrying amount was $€ 54$ million (previous year: $€ 59$ million) and is subject to amortization of $€ 8$ million (previous year: $€ 8$ million).

As at December 31, 2024, all relevant cash-generating units and groups of cash-generating units were subjected to an impairment test for the purpose of assessing the recoverability of recognized goodwill and intangible assets with indefinite useful lives. The recoverable amount was determined on the basis of a value-in-use calculation using cash flow forecasts.

The key estimation parameters on which the impairment tests were based included market shares and sales growth rates as well as price trends for raw materials, gross profit margins, and corresponding discount rates. The detailed planning provides for moderate sales growth and an EBIT return on sales that is customary in the Group's business. Based on the sales achieved in 2024, the detailed planning for the Chantecaille group of cash-generating units envisages sales growth that is significantly above average, in particular due to the introduction of new products and intensified market development, as well as increasing growth in the EBIT margin due to efficiency improvements and the elimination of negative one-off effects. The estimated future cash flows are based on financial planning with a planning horizon of five years. Cash flows beyond the planning period are extrapolated using an individual growth rate, taking external macroeconomic and business-specific factors into account.

In the 2024 financial year, there was an impairment of goodwill in the amount of $€ 38$ million from the Chantecaille group of cash-generating units, which is allocated to the Consumer Business Segment.

The carrying amount of the Chantecaille group of cash-generating units amounted to $€ 405$ million at the time of the impairment test. The need for impairment mainly results from the changed assumptions in the financial planning of the Chantecaille group of cash-generating units; these are derived from the adverse development of the market for luxury goods and the continuing negative development in the travel retail business. The value in use method is used to determine impairment. The recoverable amount is $€ 363$ million. The impairment was recognized in other operating expenses.

In the case of the nie wieder bohren GmbH cash-generating unit, the weaker market development and the associated subdued expectations with regard to cash flows and an adjustment in the calculation logic from the impairment test resulted in an impairment loss of $€ 3$ million on goodwill and $€ 5$ million on the remaining intangible assets allocated from the purchase price allocation. The value in use method is used to determine the recoverable amount. The recoverable amount is $€ 9$ million. The impairment resulting from the impairment test is recognized in other operating expenses and is attributable to the tesa Business Segment.

The impairment tests of all other cash-generating units and groups of cash-generating units did not reveal any impairment of goodwill or trademark rights in the year under review.

The 2024 financial year was characterized by a phase of uncertainty and reorientation. In some regions of the world, trends towards stabilization could be observed, but others continue to struggle with considerable economic challenges. The constantly high interest rates also led to a slowdown in economic momentum in the 2024 financial year. Economic growth was significantly lower than in previous years, driven by persistently lower private consumption and investment due to restrictive monetary policies in some countries. A decline in inflation was observed, but not as strong as expected. With regard to the global economy, business continues to suffer in particular from the subdued economic economic development in China, which in the 2024 financial year was primarily driven by the tightened trade relations with the USA and Europe. This is also having a negative impact on our Travel Retail business in this financial year. For the 2025 financial year, we expect price levels to slowly stabilize despite still high inflation rates and a persistently tense global geopolitical situation. The effects described also have an impact on growth and profitability in the Group. If the weighted average cost of capital were to be increased by $+1 \%$ in isolation, the impairment the impairment requirement of the group of cash-generating units Chantecaille would increase by $€ 56$ million. If the long-term growth rate were reduced by $-1 \%$ alone, this would result in would result in an increase in the impairment requirement of $€ 43$ million. If the reduction in the long-term If only the reduction in the long-term EBIT margin by $-1 \%$ is taken into account, the need for impairment would be $€ 14$ million higher. A reduction in the medium-term sales growth rate of $-1 \%$ would lead to an increase in the impairment requirement of $€ 18$ million. For all other cash-generating units, the Group assumes that even in the event of reasonably possible reasonably possible changes to the parameters of the impairment test, the recoverable amount would amount exceeds the carrying amount of the goodwill.

12 Property, Plant, and Equipment

Property, Plant, and Equipment - Owned

Cost (in $€$ million)
	Land, land rights, and buildings	Technical equipment and machinery	Office and other equipment	Assets under construction	Total
Jan. 1, 2023	989	1,269	800	802	3,860
Currency translation adjustment	2	$-2$	$-6$	21	15
Acquisitions	-	-	-	-	-
Divestments	-	-	-	-	-
Additions	48	32	65	331	476
Disposals	$-6$	$-74$	$-45$	$-6$	$-131$
Transfers	320	131	61	$-518$	$-6$
Dec. 31, 2023/Jan. 1, 2024	1,353	1,356	875	630	4,214
Currency translation adjustment	$-9$	$-5$	4	$-20$	$-30$
Acquisitions	-	-	-	-	-
Divestments	-	-	-	-	-
Additions	28	50	66	288	432
Disposals	$-34$	$-42$	$-36$	$-2$	$-114$
Transfers	83	90	38	$-217$	$-6$
Dec. 31, 2024	1,421	1,449	947	679	4,496

Depreciation/Impairment Loss
(in € million)

	Land, land rights, and buildings	Technical equipment and machinery	Office and other equipment	Assets under construction	Total
Jan. 1, 2023	404	839	606	$-2$	1,847
Currency translation adjustment	-	$-1$	$-3$	-	$-4$
Acquisitions	-	-	-	-	-
Divestments	-	-	-	-	-
Additions	34	80	67	-	181
Disposals	$-5$	$-72$	$-44$	-	$-121$
Transfers	-	-	-	-	-
Dec. 31, 2023/Jan. 1, 2024	433	846	626	$-2$	1,903
Currency translation adjustment	$-1$	$-2$	4	-	1
Acquisitions	-	-	-	-	-
Divestments	-	-	-	-	-
Additions	39	86	68	-	193
Disposals	$-18$	$-39$	$-34$	-	$-91$
Transfers	-	-	-	-	-
Dec. 31, 2024	453	891	664	$-2$	2,006

Carrying Amounts
(in € million)

	Land, land rights, and buildings	Technical equipment and machinery	Office and other equipment	Assets under construction	Total
Dec. 31, 2023	$\mathbf{9 2 1}$	$\mathbf{5 1 0}$	$\mathbf{2 4 8}$	$\mathbf{6 3 2}$	$\mathbf{2 , 3 1 1}$
Dec. 31, 2024	$\mathbf{9 6 8}$	$\mathbf{5 5 8}$	$\mathbf{2 8 3}$	$\mathbf{6 8 1}$	$\mathbf{2 , 4 9 0}$

The carrying amounts of property, plant, and equipment amounted to $€ 2,490$ million (previous year: $€ 2,311$ million). Investments in property, plant, and equipment totaled $€ 432$ million (previous year: $€ 476$ million). They primarily related to the plants of the two business segments, Consumer and tesa. The largest investment projects included the construction of the new plant in Leipzig and expansion of the sites in Poland and Mexico ( $€ 157$ million). The construction of the new logistics center in Leipzig resulted in additions of $€ 60$ million.

Right-of-Use Assets - Leased
Cost
(in $€$ million)

	Land, land rights, and buildings	Technical equipment and machinery	Office and other equipment	Assets under construction	Total
Jan. 1, 2023	331	5	43	-	379
Currency translation adjustment	$-9$	-	-	-	$-9$
Acquisitions	-	-	-	-	-
Additions	97	-	19	-	116
Disposals	$-28$	-	$-14$	-	$-42$
Transfers	-	-	-	-	-
Dec. 31, 2023/Jan. 1, 2024	391	5	48	-	444
Currency translation adjustment	5	-	-	-	5
Acquisitions	-	-	-	-	-
Additions	50	1	22	-	73
Disposals	$-17$	$-2$	$-11$	-	$-30$
Transfers		-	-	-	-
Dec. 31, 2024	429	4	59	-	492

Depreciation/Impairment Loss
(in € million)

	Land, land rights, and buildings	Technical equipment and machinery	Office and other equipment	Assets under construction	Total
Jan. 1, 2023	164	3	24	-	191
Currency translation adjustment	$-5$	-	-	-	$-5$
Acquisitions	-	-	-	-	-
Additions	56	1	13	-	70
Disposals	$-28$	-	$-14$	-	$-42$
Transfers	-	-	-	-	-
Dec. 31, 2023/Jan. 1, 2024	187	4	23	-	214
Currency translation adjustment	3	-	-	-	3
Acquisitions	-	-	-	-	-
Additions	59	1	15	-	75
Disposals	$-15$	$-3$	$-11$	-	$-29$
Transfers	-	-	-	-	-
Dec. 31, 2024	234	2	27	-	263

Carrying Amounts
(in $€$ million)

	Land, land rights, and buildings	Technical equipment and machinery	Office and other equipment	Assets under construction	Total
Dec. 31, 2023	203	2	25	-	230
Dec. 31, 2024	195	2	32	-	229

Carrying Amounts Property, Plant, and Equipment Total
(in € million)

	Land, land rights, and buildings	Technical equipment and machinery	Office and other equipment	Assets under construction	Total
Dec. 31, 2023	1,124	512	273	632	2,541
Property, plant, and equipment - owned	921	510	248	632	2,311
Right of use assets - leased	203	2	25	-	230
Dec. 31, 2024	1,163	560	315	681	2,719
Property, plant, and equipment - owned	968	558	283	681	2,490
Right of use assets - leased	195	2	32	-	229

The Beiersdorf Group leases real estate, mainly in the form of office space, retail stores, and warehouses. The terms of the lease agreements are diverse and individually negotiated. Lease agreements are generally concluded for a period of three to ten years and may contain extension or termination options. The "Office and other equipment" category mainly comprises leased vehicles. Further information regarding the right-of-use assets, lease liabilities, and lease expenses can be found in the section "Material Accounting Policies" as well as in Notes 08 and 30.

13 Inventories

(in € million)

	Dec. 31, 2023	Dec. 31, 2024
Raw materials, consumables, and supplies	363	407
Work in progress	77	85
Finished goods and merchandise	1,069	1,112
Advance payments	5	8
	$\mathbf{1 , 5 1 4}$	$\mathbf{1 , 6 1 2}$

Inventories increased by $€ 98$ million compared with the previous year to $€ 1,612$ million, $€ 235$ million of which (previous year: $€ 217$ million) was carried at net realizable value. Write-downs of inventories amounted to $€ 135$ million as of the reporting date (previous year: $€ 139$ million).

14 Trade Receivables

(in $€$ million)

	Dec. 31, 2023	Dec. 31, 2024
Carrying amount	$\mathbf{1 , 5 9 8}$	$\mathbf{1 , 7 9 2}$
Of which past due:
1 to 30 days	116	117
31 to 60 days	6	1
more than 60 days	59	62

Under IFRS 9, trade receivables belong to the "at amortized cost" measurement category. They are measured at cost less impairment.

The following changes in valuation allowances on receivables were recorded:

Valuation Allowances

(in $€$ million)

	2023	2024
Jan. 1	54	68
Currency translation adjustment	-2	-1
Additions	22	15
Reversals	-6	-5
Dec. 31	68	77

Further information on calculation is contained in Note 30 "Additional Disclosures on Financial Instruments, Financial Risk Management, and Derivative Financial Instruments."

15 Other (Financial) Assets and Non-current Assets and Disposal Groups Held for Sale

Other non-current financial assets comprise investments in associated companies, investments in nonconsolidated affiliates, other investments and other assets, which essentially comprises the lease receivables. Non-current assets mainly include prepaid expenses and deferred charges. Other current financial assets include other receivables, derivative financial instruments, and financial receivables. Other current assets mainly comprise other tax receivables, prepaid expenses, as well as the net pension asset related to individual pension plans (see Note 27 "Provisions for pensions and similar obligations").

The significant change in other financial and non-financial assets compared to the 2023 financial year is due to the increase in other non-current financial assets as a result of the first-time application of finance leases in accordance with IFRS 16 as lessor. This first-time application is due to the acquisition of the developed land of Clinique La Prairie on Lake Geneva in August 2024. The acquisition of Clinique La Prairie is not a business combination within the meaning of IFRS 3, as the developed land is the company's only asset. The company acquired from the acquisition is solely responsible for holding the developed land and collecting rent and there are no other significant processes. Accordingly, in accordance with IFRS 3.2b, the identified assets (- developed land) and liabilities are recognized in the consolidated balance sheet in accordance with the relevant standards. At initial recognition, the lease receivable amounted to $€ 117$ million. This amount remained unchanged at $€ 117$ million as at 31.12.2024 due to ongoing rental payments (reducing receivables) and interest (increasing receivables). The lease receivable is divided into $€ 111$ million in other non-current financial assets and $€ 6$ million in other current financial assets. The lease receivable is recognized at amortized cost. The fair value of the lease receivable as at the balance sheet date amounted to $€ 162$ million. To minimize future risks from the acquisition, variable index-dependent payments were agreed in order to mitigate the decline in value of the developed property.

The following table shows the contractually agreed, undiscounted future lease receivables before possible index adjustments.

Undiscounted Future Lease Receivables
(in $€$ million)

	Dec. 31, 2024
Less than one year	6
One to two years	6
Two to three years	6
Three to four years	6
Four to five years	6
More than five years	140
	$\mathbf{1 7 0}$

Non-current assets and disposal groups held for sale amount to $€ 2$ million as of December 31, 2024 (previous year: $€ 1$ million).

These include land and building of $€ 1$ million from the subsidiary tesa UK Ltd. These are to be sold in the course of financial year 2025.

16 Securities

(in € million)

	Dec. 31, 2023	Dec. 31, 2024
Non-current securities ${ }^{1}$	2,811	2,466
Amortized cost	2,675	2,298
Fair value through other comprehensive income	136	168
Current securities ${ }^{1}$	1,091	1,159
Amortized cost	755	703
Fair value through other comprehensive income	48	35
Fair value through profit or loss	288	421
	$\mathbf{3 , 9 0 2}$	$\mathbf{3 , 6 2 5}$

${ }^{1}$ Securities in the FVOCl category amounting to $€ 136$ million were reclassified from short-term securities to long-term securities (previous year short-term securities: $€ 1,227$ million; previous year long-term securities: $€ 2,675$ million).

In total, the Beiersdorf Group holds $€ 3,625$ million (previous year: $€ 3,902$ million) in listed government and corporate bonds, commercial paper, near-money market retail funds, and equity funds. Securities with a carrying amount of $€ 2,466$ million (previous year: $€ 2,811$ million) are expected to be realized more than 12 months after the reporting date. During the year $€ 651$ million of securities were reclassified from non-current to current in line with their remaining maturities. Non-current securities have a term of up to five years.

Impairments on securities measured at amortized cost and at fair value through other comprehensive income are recognized based on expected credit losses over the next 12 months. At the end of the period, total impairment was $€ 4$ million (previous year: $€ 5$ million). Please refer to Note 30 "Additional Disclosures on Financial Instruments, Financial Risk Management, and Derivative Financial Instruments" for additional information.

17 Cash and Cash Equivalents

(in $€$ million)

	Dec. 31, 2023	Dec. 31, 2024
Cash	1,044	1,092
Cash equivalents	89	115
	$\mathbf{1 , 1 3 3}$	$\mathbf{1 , 2 0 7}$

Cash comprises bank balances, cash-on-hand, and checks. Cash equivalents are short-term liquid investments that can be converted into cash at any time and are exposed to no more than insignificant fluctuations in value. Given the very short terms (e.g., due on demand) and the creditworthiness of our contractual partners, no impairment was identified based on expected credit losses.

As of December 31, 2024 (as in the previous year), cash and cash equivalents did not include any significant amounts over which the Group has restricted access as a result of foreign exchange controls.

18 Capital Management Disclosures

The Beiersdorf Group aims to sustainably secure its capital base and generate an appropriate return on its invested capital. As of December 31, 2024, the equity ratio was $65 \%$ (previous year: $66 \%$ ), while the EBIT return on net operating capital was $33.2 \%$ (previous year: $29.4 \%$ ). The total dividends distributed in financial year 2024 amounted to $€ 240$ million (previous year: $€ 173$ million). In the case of the dividend of $€ 227$ million (previous year: $€ 159$ million) paid by Beiersdorf AG, this corresponds to a distribution of $€ 1.00$ per no-par-value share bearing dividend rights (previous year: $€ 0.70$ ).

19 Share Capital

The share capital of Beiersdorf Aktiengesellschaft amounts to $€ 248$ million (previous year: $€ 252$ million) and is composed of 248 million no-par-value bearer shares, each with an equal share in the company's share capital. Since the settlement of the share buyback program on February 3, 2004, and following implementation of the share split in 2006 as well as the completion of the share buyback program implemented in 2024, Beiersdorf Aktiengesellschaft holds 24,785,620 no-par-value shares, corresponding to $9.99 \%$ of the company's share capital.

20 Authorized Capital

The Annual General Meeting on April 29, 2020, authorized the Executive Board to increase the share capital with the approval of the Supervisory Board in the period until April 28, 2025, by up to a total of €92 million (Authorized Capital I: €42 million; Authorized Capital II: €25 million; Authorized Capital III: $€ 25$ million) by issuing new no-par-value bearer shares on one or several occasions. In this context, the dividend rights for new shares may be determined by a different method than that set out in § 60 (2) AktG.

Shareholders shall be granted pre-emptive rights. However, the Executive Board is authorized, with the approval of the Supervisory Board, to disapply shareholders' pre-emptive rights in the following cases:

1. To eliminate fractions created as a result of capital increases against cash contributions (Authorized Capital I, II, III)
2. To the extent necessary to grant the holders or creditors of convertible bonds or bonds with warrants issued by Beiersdorf Aktiengesellschaft, or companies in which it holds a direct or indirect majority interest, rights to subscribe for new shares in the amount to which they would be entitled after exercising their conversion or option rights, or after fulfilling their conversion obligation (Authorized Capital I, II, III)
3. If the total amount of share capital attributable to the new shares for which pre-emptive rights are to be disapplied does not exceed $10 \%$ of the share capital existing at the time this authorization comes into effect or, in the event that this amount is lower, at the time the new shares are issued and the issue price of the new shares is not materially lower than the quoted market price of the existing listed shares at the time when the issue price is finalized, which should be as near as possible to the time the shares are placed. If, during the term of the authorized capital, other authorizations to issue or sell shares in the company or to issue rights that enable or oblige the holder to subscribe for shares in the company are exercised while disapplying pre-emptive rights pursuant to or in accordance with $\S 186$ (3) sentence 4 AktG, this must be counted toward the above mentioned 10\% limit (Authorized Capital II)
4. In the case of capital increases against non-cash contributions for the purpose of acquiring companies, business units of companies, or equity interests in companies (Authorized Capital III)

The Executive Board may only exercise the above authorizations to disapply pre-emptive rights to the extent that the total proportionate interest in the share capital attributable to the shares issued while disapplying pre-emptive rights does not exceed $10 \%$ of the share capital at the time these authorizations become effective or at the time these authorizations are exercised. If other authorizations to issue or sell shares in the company or to issue rights that enable or oblige the holder to subscribe for shares in the company are exercised while disapplying pre-emptive rights during the term of the authorized capital until such time as it is utilized, this must be counted toward the above-mentioned limit.

The Executive Board was also authorized to determine the further details of the capital increase and its implementation with the approval of the Supervisory Board.

21 Contingent Capital

In addition, the Annual General Meeting on April 29, 2020 resolved to contingently increase the share capital by up to a total of $€ 42$ million, composed of up to 42 million no-par-value bearer shares. In accordance with the underlying resolution of the Annual General Meeting, the contingent capital increase will be implemented only if:

1. the holders or creditors of conversion and/or option rights attached to the convertible bonds and/or bonds with warrants issued in the period until April 28, 2025 by Beiersdorf Aktiengesellschaft or companies in which it holds a direct or indirect majority interest, choose to exercise their conversion or option rights, or
2. the holders or creditors of convertible bonds giving rise to a conversion obligation issued in the period until April 28, 2025 by Beiersdorf Aktiengesellschaft, or companies in which it holds a direct or indirect majority interest, comply with such obligation,
   and the contingent capital is required for this in accordance with the terms and conditions of the bonds.
   The new shares bear dividend rights from the beginning of the financial year in which they are created as a result of the exercise of conversion or option rights, or as a result of compliance with a conversion obligation.

The Executive Board was authorized to determine the further details of the implementation of a contingent capital increase.

22 Additional Paid-in Capital

Additional paid-in capital comprises the premium arising from the issue of shares by Beiersdorf AG.

23 Retained Earnings

Retained earnings comprise the net profit for the financial year and undistributed profits generated in prior periods by companies included in the consolidated financial statements. In addition, this item contains the actuarial gains and losses on remeasurements of defined benefit obligations in previous years. The retained earnings are reduced by the cost of the treasury shares held by Beiersdorf Aktiengesellschaft.

Treasury shares, which amounted to $25,181,016$ shares (around $9.99 \%$ of the share capital) as at December 31, 2023, developed as follows in the reporting year:

In the ad hoc announcement dated February 5, 2024, the Executive Board announced, with the approval of the Supervisory Board, that it would carry out a share buyback program in addition to a

significant increase in the dividend by EUR 0.30 to EUR 1.00 per share in order to allow shareholders to participate in the positive business results of recent years; this actively created value for the company's shareholders while sending a clear signal to the capital market.

The share buyback program was carried out on the basis of the authorization granted by the Annual General Meeting of Beiersdorf Aktiengesellschaft on April 29, 2020. Under the authorization, Beiersdorf Aktiengesellschaft is entitled to purchase treasury shares representing up to $10 \%$ of the share capital on or before April 28, 2025.

To implement the share buyback program, Beiersdorf Aktiengesellschaft cancelled treasury shares in several steps (before the start of the share buyback program with effect from April 19, 2024, 3,000,000 treasury shares, corresponding to $1.19 \%$ of the share capital at that time; with effect from July 12, 2024, 900,000 treasury shares, corresponding to around $0.36 \%$ of the share capital at that time; with effect from August 1, 2024, 100,000 treasury shares, corresponding to around $0.04 \%$ of the share capital at that time). The share buyback program ended on August 6, 2024. The purchase of the shares was carried out by a credit institution engaged by Beiersdorf Aktiengesellschaft.

The total volume of shares purchased under the share buyback program in the period from April 24, 2024 through August 6, 2024, inclusive, was 3,604,604 shares with a buyback value of $€ 499,999,910.97$ (excluding transaction costs). As at December 31, 2024, the number of treasury shares therefore amounts to $24,785,620$ shares (approximately $9.99 \%$ of the share capital).

Detailed information on the individual transactions can be found on Beiersdorf Aktiengesellschaft's website: www.beiersdorf.com/investor-relations/shares/share-buyback.

24 Accumulated Other Comprehensive Income

Currency Translation Adjustment

The currency translation adjustment equity account serves to recognize differences resulting from the translation of the financial statements of affiliates that do not have the euro as their functional currency.

Hedging Instruments from Cash Flow Hedges

Changes in the fair value of financial instruments used to hedge future cash flows are reported under this item. As of the reporting date, market values amounting to $€-13$ million (previous year: $€ 7$ million) after deduction of deferred taxes of $€ 4$ million (previous year: $€-2$ million) were recognized in other comprehensive income.

Debt and Equity Instruments

This item includes fair value changes amounting to $€-4$ million (previous year: $€-8$ million) on securities in the "at fair value through other comprehensive income" category after deduction of deferred taxes of $€ 1$ million (previous year: $€ 3$ million). It also includes impairment of securities in the "at fair value through other comprehensive income" category.

Changes in the fair value of equity instruments allocated to the "at fair value through other comprehensive income" category under IFRS 9 are also recognized here. No changes in the fair value of equity instruments were recognized in other comprehensive income for this or the previous financial year.

25 Non-Controlling Interests

Non-controlling interests mainly consist of the proportionate share of third-party net assets in the equity of Nivea-Kao Co., Ltd., Beiersdorf India Pvt. Ltd., Alpa-BDF Ltd., and Turath Al-Bashara for Trading

Limited (Skin Heritage for Trading). Changes during the reporting year are shown in the consolidated statement of changes in equity. The share of profit for the year can be found in the income statement. The share of other comprehensive income mainly comprises currency effects resulting from translating the financial statements from the functional currency into the reporting currency, the euro.

26 Dividends

In accordance with the German Stock Corporation Act, dividends are distributed from net retained profits reported in the HGB single-entity financial statements of Beiersdorf AG. The Executive Board and Supervisory Board will propose a dividend of $€ 1.00$ per no-par-value share bearing dividend rights to the Annual General Meeting. The proposed distribution must be approved by the shareholders at the Annual General Meeting and therefore is not reported as a liability in the consolidated financial statements.

In accordance with the resolution of the Annual General Meeting on April 18, 2024, a dividend of $€ 1.00$ per dividend-bearing share was resolved for the financial year 2023. With 226,818,984 shares entitled to dividends, the dividend payment totalled $€ 227$ million.

27 Provisions for Pensions and Other Post-Employment Benefits

Group companies provide retirement benefits under both defined contribution and defined benefit plans (as defined in IAS 19). With the exception of net interest, the defined benefit and defined contribution expenses are included in the costs of the respective functions. Net pension interest is reported in the financial result.

There was no material income or expense from the termination of pension plans or the curtailment and transfer of pension benefits in the year under review or the previous year.

Defined contribution expenses contain mainly contributions to statutory or state pension insurance funds.

Pension Benefit Expenses
(in € million)

	2023			2024
	Germany	Other countries	Group	Germany	Other countries	Group
Current service cost	21	11	32	22	13	35
Past service cost	-	-	-	-	-	-
Defined benefit expense (EBIT)	21	11	32	22	13	35
Net interest result attributable to defined benefit plans (pension expense ( + )/pension income (-))	12	-	12	10	-	10
Total expenses for defined benefit plans	33	11	44	32	13	45
Defined contribution expense (EBIT)	46	23	69	47	25	72
Total pension expense	79	34	113	79	38	117

Defined Benefit Pension Plans

The structure of the plans varies depending on the legal, economic, and tax situation in the country in question, and the plans are generally based on the employees' length of service, salary, and status, as well as their own contributions. The largest plans can be found at the German companies.

International defined benefit plans are largely spread across the sites in the United Kingdom, Switzerland, and the USA.

The present value of the defined benefit obligations and the fair value of the plan assets are attributable in the table "Provision for Pensions and Other Post-employment Benefits" to Germany and other countries. In Germany, the net obligation is equal to the balance sheet provisions. In a number of other countries, the fair value of plan assets exceeds the pension obligations. In such cases, an asset item is recognized if the company can also derive an economic benefit from these assets. Amounts that cannot be recognized due to an asset ceiling are recognized in other comprehensive income. The asset ceiling developed in the reporting period as follows:

Asset Ceiling
(in $€$ million)
	December 31, 2023			December 31, 2024
	Germany	Other countries	Group	Germany	Other countries	Group
Opening balance	-	15	15	-	7	7
Change in other comprehensive income	-	$-8$	$-8$	-	2	2
Closing balance	-	7	7	-	9	9

Provisions for Pensions and Other Post-Employment Benefits
(in € million)

	Dec. 31, 2023			Dec. 31, 2024
	Germany	Other countries	Group	Germany	Other countries	Group
Present value of defined benefit obligations	1,272	253	1,525	1,281	263	1,544
Fair value of plan assets	$-949$	$-255$	$-1,204$	$-977$	$-275$	$-1,252$
Amounts not recognized due to asset ceiling limits	-	7	7	-	9	9
Net obligation	323	5	328	304	$-3$	301
Net pension asset in other current assets	-	22	22	-	27	27
Provisions for pensions and other post-employment benefits	323	27	350	304	24	328

A majority of the defined benefit obligations within the Beiersdorf Group relate to employees in Germany. These are primarily obligations in relation to retirement pensions, disability pensions, and surviving dependents' pensions granted as a supplement to the statutory pension insurance. Pension commitments in Germany largely consist of direct and indirect commitments by Beiersdorf AG and direct commitments by tesa SE. The benefits depend on the employees' length of service and their average salary over the three years immediately preceding the date on which the pension becomes payable. The pension payments to the beneficiaries are adjusted annually by $1 \%$, at the latest, every three years in accordance with the Consumer Price Index (CPI).

Defined benefit obligations are funded exclusively by employer payments. Although there is no minimum funding requirement in Germany, both Beiersdorf AG and tesa SE have transferred plan assets to a separate entity. In addition, the benefit plans are protected against the consequences of insolvency in accordance with the German Occupational Pensions Act (BetrAVG); annual contributions are made to the Pensions-Sicherungs-Verein (German Pension Protection Fund) for this.

Beiersdorf AG has transferred plan assets to an entity with the legal form of a foundation (TROMA Alters- und Hinterbliebenenstiftung, Hamburg). The board of trustees of the foundation is composed of representatives of the company and of the Group Works Council. The board of trustees is responsible for setting and implementing the investment strategy. The strategy is regularly reviewed and adjusted as necessary in light of the latest developments.

Plan assets of tesa SE are invested and managed by an independent trustee via a contractual trust agreement (CTA). An investment committee consisting of representatives of the company and of the Works Council sets the investment strategy. Portfolio performance and the current situation are analysed at regular intervals and, where necessary, the investment strategy is amended to reflect changed conditions.

The pension obligations are exposed to risks from changes in actuarial assumptions, such as interest rates, salary and pension trends, and longevity risk. To mitigate the risk of changes in capital market conditions and demographic developments, the aforementioned pension plans were closed to tesa employees in 2005 and to Beiersdorf employees in 2008. Employees joining the companies after this date can join employee-financed benefit plans. Under these plans, they can save part of their pensionable pay and also receive an employer contribution. The plan assets are invested and managed by independent trustees via a CTA. The employer guarantees a minimum return on contributions of $3.25 \%$ per annum until retirement. New entrants at Beiersdorf from 2019 are guaranteed a minimum return of $1.8 \%$. For new entrants at tesa from 2022, a minimum interest rate of $1.5 \%$ is guaranteed. The pension can be paid in the form of an annuity or as a lump sum.

The expenses for defined benefit plans and the present value of pension commitments are determined on the basis of actuarial calculations.

Measurement is based on the following assumptions:

Actuarial Assumptions

(in \%)

	2023		2024
	Germany	Other countries	Germany	Other countries
Discount rates	3.50	3.42	3.50	3.18
Projected wage and salary growth	3.25	3.01	3.00	2.60
Projected pension growth ${ }^{1}$	2.25	2.24	2.00	2.18
Projected staff turnover	2.14	9.06	2.14	8.22

${ }^{1}$ In Germany provided the contractual agreement of $1 \%$ does not apply.

The figures given are averages. The local parameters were weighted using the present values of the relevant defined benefit obligations. The discount rates are determined based on the yields of top-tier corporate bonds on the market as of the relevant reporting date. The currency and term of the underlying bonds match the currency and expected maturities of the post-employment pension obligations. Developments in inflation were taken into account in the pension trend.

During the period under review, the present value of the defined benefit obligations changed as shown in the table below.

Present Value of Defined Benefit Obligations
(in € million)

	2023			2024
	Germany	Other countries	Group	Germany	Other countries	Group
Jan. 1	1,224	235	1,459	1,272	253	1,525
Current service cost	21	11	32	22	13	35
Past service cost	-	-	-	-	-	-
Net interest expense	44	8	52	43	8	51
Actuarial gains (-) and losses (+)	27	5	32	$-16$	1	$-15$
Of which experience adjustments	$-9$	$-1$	$-10$	6	5	11
Of which due to changes in financial assumptions	35	7	42	$-22$	$-3$	$-25$
Of which due to changes in demographic assumptions	1	$-1$	-	-	$-1$	$-1$
Contributions by plan participants	9	4	13	10	4	14
Pension benefits paid	$-53$	$-14$	$-67$	$-50$	$-17$	$-67$
Currency translation adjustment	-	5	5	-	4	4
Other changes	-	$-1$	$-1$	-	$-3$	$-3$
Dec. 31	1,272	253	1,525	1,281	263	1,544

The funded status of the present value of the Group's defined benefit obligations as of the reporting date was as follows:

Funded Status of Present Value of Defined Benefit Obligations
(in € million)

	Dec. 31, 2023			Dec. 31, 2024
	Germany	Other countries	Group	Germany	Other countries	Group
Partly or wholly funded defined benefit obligations	1,267	235	1,502	1,276	243	1,519
Unfunded defined benefit obligations	5	18	23	5	20	25
Present value of defined benefit obligations	1,272	253	1,525	1,281	263	1,544

The change in plan assets during the period under review was as follows:

Fair Value of Plan Assets
(in € million)

	2023			2024
	Germany	Other countries	Group	Germany	Other countries	Group
Jan. 1	868	246	1,114	949	255	1,204
Return on plan assets	32	8	40	33	8	41
Actuarial gains ( + ) and losses ( - )	50	$-5$	45	$-12$	7	$-5$
Actual return on plan assets	82	3	85	21	15	36
Employer contributions	4	8	12	4	15	19
Contributions by plan participants	13	4	17	15	4	19
Pension benefits paid	$-18$	$-12$	$-30$	$-12$	$-14$	$-26$
Currency translation adjustment	-	7	7	-	4	4
Other changes	-	$-1$	$-1$	-	$-4$	$-4$
Dec. 31	949	255	1,204	977	275	1,252

In financial year 2025, employer contributions to plan assets are expected to amount to $€ 21$ million. The breakdown of the plan assets as of the reporting date was as follows:

Composition of Plan Assets
(in € million)

	Dec. 31, 2023			Dec. 31, 2024
	Germany	Other countries	Group	Germany	Other countries	Group
Equity instruments	122	81	203	147	88	235
Debt instruments	329	73	402	392	78	470
Real estate	216	33	249	236	36	272
Cash and cash equivalents	253	14	267	176	12	188
Other	29	54	83	26	61	87
Total plan assets	949	255	1,204	977	275	1,252

The plan assets serve exclusively to meet the benefit obligations. The funding provided for these benefit obligations represents a provision for future cash outflows. The overarching investment policy and investment strategy are based on the goal of generating a return on plan assets in the medium term which, taken together with the contributions, is sufficient to meet the pension obligations. The plan assets are invested in a variety of different asset classes so as to avoid risk clusters.

The equity instruments comprise investments in equity funds and direct investments. In general, these have quoted market prices in a liquid market. Passive index tracker equity funds may contain a limited number of Beiersdorf shares. No Beiersdorf shares are held directly. Of the equity instruments in Germany, $98 \%$ are attributable to mature markets and $2 \%$ are attributable to emerging markets.

Debt instruments may comprise investments in funds and direct investments in bonds. In general, these have quoted market prices in a liquid market. In Germany, $66 \%$ are attributable to corporate bonds and $34 \%$ to government bonds.

Real estate consists of residential and commercial properties. Investments can take the form of both investments in listed real estate funds and directly held properties. As in the previous year, the portfolio did not contain any buildings held and used as of the reporting date.

Cash and cash equivalents included in the previous year a short-term deposit of TROMA Alters- und Hinterbliebenenstiftung with Beiersdorf AG in the amount of $€ 163$ million.

The development of the net liability in the reporting period and in the previous year can be summarized as follows:
€ million

2023	Defined benefit obligation	Plan assets	Asset ceiling	Net book value
Beginning balance (Jan. 1)	1,459	$-1,114$	15	360
Current service cost	32	-	-	32
Past service cost	-	-	-	-
Gains (-) or losses (+) on curtailments and settlements	-	-	-	-
Net pension interest	52	$-40$	-	12
Total amounts recorded in the income statement	84	$-40$	-	44
Remeasurements
Actuarial gains (-) or losses (+) on plan assets	-	$-45$	-	$-45$
Experience gains (-) or losses (+)	$-10$	-	-	$-10$
Actuarial gains (-) or losses (+) from change in demographic assumptions	-	-	-	-
Actuarial gains (-) or losses (+) from change in financial assumptions	42	-	-	42
Change in asset ceiling (excluding interest component)	-	-	$-8$	$-8$
Total amounts recorded in other comprehensive income	32	$-45$	$-8$	$-21$
Employer contributions	-	$-12$	-	$-12$
Employee contributions	13	$-17$	-	$-4$
Benefit payments	$-67$	30	-	$-37$
Curtailments / settlements	-	-	-	-
Currency and other changes	4	$-6$	-	$-2$
Ending balance (Dec. 31)	1,525	$-1,204$	7	328

The net obligation on the balance sheet date totaled $€ 301$ million (previous year: $€ 328$ million). Of this, $€ 304$ million was attributable to Germany (previous year: $€ 323$ million) and $€ 3$ million to other countries (previous year: $€ 5$ million).

The following overview provides a breakdown of the weighted average duration of the present values of the defined benefit obligations and a maturity analysis of expected pension payments:

Duration and Maturity Analysis

	Dec. 31, 2023			Dec. 31, 2024
	Germany	Other countries	Group	Germany	Other countries	Group
Duration of the present value of the pension obligations (in years)	15	13	14	14	13	14
Maturity analysis of the expected pension payments (in $€$ million)
Up to 1 year	54	10	64	57	14	71
More than 1 and up to 2 years	57	10	67	66	14	80
More than 2 and up to 5 years	205	31	236	208	43	251
More than 5 and up to 10 years	339	50	389	345	72	417

The following sensitivity analysis shows the effect of individual changes in assumptions on the present value of the defined benefit obligations:

Sensitivity of the Defined Benefit Obligations
Change in present value of defined benefit obligations
(in $€$ million)

	Dec. 31, 2023			Dec. 31, 2024
	Germany	Other countries	Group	Germany	Other countries	Group
Discount rate
$+0.50 \%$	$-85$	$-6$	$-91$	$-83$	$-11$	$-94$
$-0.50 \%$	96	7	103	95	12	107
Projected wage and salary growth
$+0.25 \%$	2	-	2	2	1	3
$-0.25 \%$	$-2$	-	$-2$	$-2$	$-1$	$-3$
Projected pension growth
$+0.25 \%$	21	2	23	21	4	25
$-0.25 \%$	$-22$	$-1$	$-23$	$-20$	$-2$	$-22$
Projected staff turnover
$+0.25 \%$	-	$-1$	$-1$	-	$-2$	$-2$
$-0.25 \%$	-	1	1	-	2	2
Life expectancy
Increase of one year	49	2	51	48	3	51
Decrease of one year	$-46$	$-2$	$-48$	$-45$	$-4$	$-49$

The sensitivity analysis is based on realistic potential changes as of the end of the reporting period. It was performed using a methodology that extrapolates the effect of realistic changes in the key assumptions at the end of the reporting period on the defined benefit obligation. Each change in the key actuarial assumptions was analysed separately. No interdependencies were taken into account.

28 Other Provisions

(in $€$ million)

	Personnel	Marketing and selling	Litigation and similar risks	Miscellaneous	Total
Jan. 1, 2024	388	79	193	120	779
Of which non-current	89	-	38	23	150
Currency effects	1	1	$-18$	4	$-12$
Additions	283	51	36	76	446
Utilized	240	32	11	28	311
Reversals	33	11	37	18	99
Dec. 31, 2024	399	88	163	154	804
Of which non-current	105	-	52	48	205

Provisions are recognized if an obligation toward a third party exists, the outflow of resources is probable, and the likely amount of the obligation can be estimated reliably. The calculation of provisions is determined based on the best possible estimation of the parameters.

Long-term provisions are discounted using a discount rate dependent on when they are expected to be settled, provided the interest effect is material.

Provisions for personnel expenses primarily comprise provisions for annual bonuses, vacation pay, anniversary payments, and severance agreements. The provisions for marketing and selling expenses relate in particular to provisions for product returns, cooperative advertising allowances, and other marketing-related obligations. Provisions for litigation and similar risks include provisions for litigation in Brazil amounting to $€ 79$ million (previous year: $€ 111$ million), risks in connection with customs audits in the amount of $€ 10$ million (previous year: $€ 12$ million) and patent risks amounting to $€ 13$ million (previous year: $€ 16$ million). The miscellaneous provisions relate to a wide variety of matters and companies and also include provisions for restructuring. The performance-related purchase price components resulting from the Chantecaille acquisition are also reported under other provisions.

29 Liabilities

The following table gives a breakdown of current liabilities:

Current Liabilities (in $€$ million)
	Dec. 31, 2023	Dec. 31, 2024
Trade payables (AC)	2,234	2,571
Other current financial liabilities	$\mathbf{3 3 3}$	$\mathbf{2 0 0}$
Other financial liabilities (AC)	318	165
Negative fair value of derivatives (DFI)	15	35
Other current liabilities	$\mathbf{1 5 6}$	$\mathbf{1 3 1}$
Other tax liabilities	132	115
Social security liabilities	20	13
Other miscellaneous liabilities	4	3
	$\mathbf{2 , 7 2 3}$	$\mathbf{2 , 9 0 2}$

Other financial liabilities primarily comprise short-term bank loans amounting to $€ 30$ million (previous year: $€ 20$ million) and lease liabilities of $€ 84$ million (previous year: $€ 82$ million). The prior-year liabilities to TROMA Alters- und Hinterbliebenenstiftung of $€ 163$ million from investment activities involving TROMA plan assets were fully repaid during the financial year. At $€ 131$ million (previous year: $€ 156$ million), other current liabilities are largely unchanged in amount and composition. As the current liabilities have remaining contractual maturities of less than 12 months as of the reporting date, their carrying amounts at the balance sheet date correspond approximately to their fair value.

As part of its strategic supplier management, Beiersdorf offers selected suppliers in 11 countries the opportunity to participate in a supply chain financing program with Deutsche Bank. Once participating suppliers invoice Beiersdorf, Beiersdorf posts the invoices on a Deutsche Bank platform so that the participating suppliers have the opportunity to sell these invoices to the bank and thus generate a faster cash inflow. The extent to which this option to sell the receivables is used is completely at the suppliers' discretion. Beiersdorf is not informed and does not incur any costs as a result. Payment of these liabilities when due is made via the bank's platform, irrespective of whether the supplier has sold its receivable or not. Beiersdorf considers these liabilities as part of its working capital management and continues to classify this liability as a trade payable. Liabilities to participating suppliers totaled $€ 194$ million (previous year: $€ 127$ million) at the reporting date, of which suppliers have already received $€ 127$ million as of the reporting date. The payment terms for liabilities within the supply chain financing program ranged from 30 to 180 days with a median of 120 days. The payment terms for

liabilities to suppliers who did not participate in the supply chain financing program ranged from one to 180 days with a median of 60 days.

In addition, Beiersdorf offers selected suppliers in Brazil the opportunity to receive payments in advance from the Itaú Unibanco S.A. Bank. The agreement is made directly between the supplier and the bank. On the due date, the invoice amounts that were paid in advance via the program are paid directly to the supplier. The amounts advanced via the program are paid on the original due date directly to the bank. Beiersdorf continues to consider these liabilities as part of its working capital management and continues to classify this liability as a trade payable. As of the reporting date, liabilities to participating suppliers totaled $€ 70$ million (previous year: $€ 55$ million), of which suppliers have already received $€ 23$ million as of the reporting date. The payment terms for trade payables range between 90 and 120 days, irrespective of whether the suppliers participate in the program or not.

Non-current liabilities are comprised as follows:

Non-Current Liabilities (in $€$ million)
	Dec. 31, 2023	Dec. 31, 2024
Non-current financial liabilities	$\mathbf{1 5 3}$	$\mathbf{1 5 1}$
Other non-current liabilities	-	-
	$\mathbf{1 5 3}$	$\mathbf{1 5 1}$

Non-current financial liabilities primarily comprise non-current lease liabilities.

30 Additional Disclosures on Financial Instruments, Financial Risk Management, and Derivative Financial Instruments

The table below shows the carrying amounts and fair values of the Group's financial instruments as of December 31, 2023, and December 31, 2024:
(in $€$ million)

2023	Carrying amount Dec. 31	Measurement category under IFRS 9			Fair value through profit or loss	Fair value Dec. 31
		Amortized cost	Fair value recognized in OCI
Assets
Amortized cost (AC)	6,320	6,320	-	-	-	6,129
Non-current financial assets	27	27	-	-		27
Trade receivables	1,598	1,598	-	-	-	1,598
Other current financial assets	132	132	-	-		132
Cash and cash equivalents	1,133	1,133	-	-	-	1,133
Securities	3,430	3,430	-	-	-	3,239
Fair value through other comprehensive income (FVOCI)	189	-	189	-		189
Non-current financial assets	5	-	5	-		5
Securities	184	-	184	-		184
Fair value through profit or loss (FVPL)	292	-	-	292		292
Non-current financial assets	4	-	-	4		4
Securities	288	-	-	288		288
Derivative financial instruments used for hedges (DFI) ${ }^{2}$	17	-	17	-		17
Derivative financial instruments not included in a hedging relationship (FVPL) ${ }^{2}$	11	-	-	11		11
Liabilities
Other financial liabilities (AC)	2,472	2,472	-	-		2,472
Non-current financial liabilities ${ }^{1}$	2	2	-	-		2
Trade payables	2,234	2,234	-	-		2,234
Other current financial liabilities ${ }^{1}$	236	236	-	-		236
Derivative financial instruments used for hedges (DFI) ${ }^{2}$	10	-	10	-		10
Derivative financial instruments not included in a hedging relationship (FVPL) ${ }^{2}$	5	-	-	5		5

${ }^{1}$ Following a review of the categorization, lease liabilities are no longer reported under non-current financial liabilities (previous year: $€ 153$ million) and other current financial liabilities (previous year: $€ 318$ million).
${ }^{2}$ Following a review of the categorization, market values of $€ 8$ million were reclassified from the category of derivative financial instruments used for hedges (DFI) to derivative financial instruments not included in a hedging relationship (FVPL).
${ }^{3}$ Following a review of the categorization, market values of $€ 5$ million were reclassified from the category of derivative financial instruments with hedge relationship (DFI) to derivative financial instruments not included in a hedging relationship (FVPL).

2024	Carrying amount Dec. 31	Measurement category under IFRS 9			Fair value Dec. 31
		Amortized cost	Fair value recognized in OCI	Fair value through profit or loss
Assets
Amortized cost (AC)	6,134	6,134	-	-	5,954
Non-current financial assets	24	24	-	-	24
Trade receivables	1,792	1,792	-	-	1,792
Other current financial assets	110	110	-	-	110
Cash and cash equivalents	1,207	1,207	-	-	1,207
Securities	3,001	3,001	-	-	2,821
Fair value through other comprehensive income (FVOCI)	212	-	212	-	212
Non-current financial assets	9	-	9	-	9
Securities	203	-	203	-	203
Fair value through profit or loss (FVPL)	426	-	-	426	426
Non-current financial assets	5	-	-	5	5
Securities	421	-	-	421	421
Derivative financial instruments used for hedges (DFI)	13	-	13	-	13
Derivative financial instruments not included in a hedging relationship (FVPL)	8	-	-	8	8
Liabilities
Other financial liabilities (AC)	2,652	2,652	-	-	2,652
Non-current financial liabilities	-	-	-	-	-
Trade payables	2,571	2,571	-	-	2,571
Other current financial liabilities	81	81	-	-	81
Derivative financial instruments used for hedges (DFI)	26	-	26	-	26
Derivative financial instruments not included in a hedging relationship (FVPL)	9	-	-	9	9

The following overview shows the IFRS 13 fair value hierarchy levels used to classify financial instruments that are measured at fair value on a recurring basis:
(in € million)

	Fair value hierarchy under IFRS 13
Dec. 31, 2023	Level 1	Level 2	Level 3	Total
Assets
Fair value through other comprehensive income (FVOCI)	184	-	5	189
Non-current financial assets	-	-	5	5
Securities	184	-	-	184
Fair value through profit or loss (FVPL)	288	-	4	292
Non-current financial assets	-	-	4	4
Securities	288	-	-	288
Derivative financial instruments used for hedges (DFI) ${ }^{1}$	-	17	-	17
Derivative financial instruments not included in a hedging	-	11	-	11
relationships (FVPL)
Derivative financial instruments used for hedges (DFI) ${ }^{2}$	-	10	-	10
Derivative financial instruments not included in a hedging	-	5	-	5
relationships (FVPL) ${ }^{1}$

${ }^{1}$ Following a review of the categorization, market values of $€ 8$ million were reclassified from the category of derivative financial instruments used for hedges (DFI) to derivative financial instruments not included in a hedging relationship (FVPL).
${ }^{2}$ Following a review of the categorization, market values of $€ 5$ million were reclassified from the category of derivative financial instruments used for hedges (DFI) to derivative financial instruments not included in a hedging relationship (FVPL).
${ }^{3}$ Following a review of the categorization, market values of $€ 5$ million were reclassified from the category of derivative financial instruments used for hedges (DFI) to derivative financial instruments not included in a hedging relationship (FVPL).

	Fair value hierarchy under IFRS 13
Dec. 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Fair value through other comprehensive income (FVOCI)	203	-	9	212
Non-current financial assets	-	-	9	9
Securities	203	-	-	203
Fair value through profit or loss (FVPL)	421	-	5	426
Non-current financial assets	-	-	5	5
Securities	421	-	-	421
Derivative financial instruments used for hedges (DFI)	-	13	-	13
Derivative financial instruments not included in a hedging	-	8	-	8
relationships (FVPL)
Liabilities
Derivative financial instruments used for hedges (DFI)	-	26	-	26
Derivative financial instruments not included in a hedging	-	9	-	9
relationships (FVPL)

In the Beiersdorf Group, securities carried at fair value are allocated to fair value hierarchy Level 1 and are measured at quoted prices on the balance sheet date.

Derivative financial instruments are assigned to fair value hierarchy Level 2. The fair values of currency $\rightarrow$ $y$ forwards are calculated using the exchange rate as of the reporting date and discounted to the reporting date on the basis of their respective yield curves.

Fair value hierarchy Level 3 contains market values of equity investments and investment funds. They are usually assigned to the category "at fair value through profit or loss" (FVPL). If there is no intention to trade, Beiersdorf makes use of the option to assign certain financial investments in equity instruments to the FVOCl category without recycling. None of the investments in themselves are material for the Beiersdorf Group.

The changes in fair value of financial instruments categorized in Level 3 in financial years 2023 and 2024 can be viewed in the table below.

Development of Level 3 Assets and Liabilities
(in € million)

	Non-current financial assets (FVOCl)	Non-current financial assets (FVPL)
Carrying amount Jan. 1, 2023	3	3
Additions	2	1
Disposals	-	-
Gain/loss recognized in profit or loss	-	-
Gain/loss recognized in other comprehensive income	-	-
Currency effects and other changes	-	-
Carrying amount Dec. 31, 2023/Jan. 1, 2024	5	4
Additions	4	2
Disposals	-	-
Gain/loss recognized in profit or loss	-	$-1$
Gain/loss recognized in other comprehensive income	-	-
Currency effects and other changes	-	-
Carrying amount Dec. 31, 2024	9	5

Due to their minor significance, we have not carried out a sensitivity analysis of the parameters relevant to fair value hierarchy Level 3.

There were no reclassifications between measurements categories or within the fair value hierarchy during the reporting year. In order to comply with internal minimum requirements for issuers' creditworthiness, Beiersdorf sold bonds from the "at amortized cost" (AC) category with a carrying amount of $€ 68$ million before maturity in the reporting year. This resulted in a loss of $€ 0$ million, which is recognized within "Other financial result."

Financial instruments that are not measured at fair value predominantly have remaining contractual maturities of less than 12 months as of the reporting date. Therefore, their carrying amounts at the balance sheet date correspond approximately to their fair value. Securities belonging to the "at amortized cost" (AC) category are an exception. The fair values for this item have been assigned to fair value hierarchy Level 1.

Risk Management Principles

As a result of its operations, the Beiersdorf Group is exposed to various risks such as currency risk, interest rate risk, and default risk. These risks are countered by active treasury management based on a global directive. They are managed and hedged centrally to a very large extent.

Derivative financial instruments are used to hedge the operational business and material financial transactions. The transactions are conducted exclusively with marketable instruments. IFRS 7 requires sensitivity analyses, which show the effects of hypothetical changes in relevant risk variables on profit or loss and equity, to be used in presenting market risk. For the Beiersdorf Group, this mainly relates to currency risk. The effects are ascertained by applying the hypothetical changes in risk variables to the portfolio of financial instruments as of the balance sheet date. It is assumed that the portfolio at the reporting date is representative for the full year.

Currency Risk

Currency risk is the risk of fluctuations in the fair value or future cash flows of a financial instrument as a result of changes in exchange rates.

Currency risk within the meaning of IFRS 7 arises through monetary financial instruments that are reported in a currency other than the functional currency. Exchange rate differences arising from the translation of financial statements of affiliates into the Group currency are not included. Relevant risk variables are therefore basically all non-functional currencies in which financial instruments are held by the Beiersdorf Group. As a result of the Beiersdorf Group's international orientation and emphasis on the eurozone, the euro serves as the key currency. Consequently, the Beiersdorf Group is exposed to risks through financing measures and operational activities when other currencies fluctuate against the euro.

As a matter of principle, currency risks relating to cross-border intragroup financing are hedged centrally in full and at matching maturities using currency forwards. In such cases, the measurements of the derivative financial instruments are directly offset by changes in market value of the hedged items. These derivative financial instruments are allocated to the "derivatives not included in a hedging relationship" category; hedge accounting pursuant to IFRS 9 is not used. Derivatives not included in a hedging relationship are used solely to hedge economic risk and not for speculative purposes.

With regard to operations, a majority of cash flows in non-functional currencies in the Beiersdorf Group are generally hedged for the next 12 months using standard currency forwards. These transactions are recorded, measured, and managed centrally in the treasury management system. When a transaction is executed, the economic relationship between the hedging instrument and the hedged item is documented, along with the risk management objective and risk management strategy.

In forward currency transactions, Beiersdorf designates both the spot and the forward components into the hedging relationship. The effectiveness is determined using the critical terms match method at the beginning of the hedging relationship and through regular prospective assessments to ensure that there is an economic relationship between the hedged item and the hedging transaction. The ineffective portion of cash flow hedges refers to the income or expenses from changes in the fair value of hedging instruments that exceed the changes in the fair value of the underlying transactions. Time shifts between the underlying and hedging transactions as well as the consideration of the credit risk component in the hedging transaction can result in ineffectiveness in hedging relationships. Overall, these are not material for the Beiersdorf Group. Depending on the underlying transaction, ineffective parts of the change in value are recognized in the operating result.

The netted positive and negative fair values of the currency forwards at the balance sheet date totaled $€-14$ million (previous year: $€ 13$ million), and their notional value was $€ 2,364$ million (previous year: $€ 2,167$ million). As of the balance sheet date, the remaining terms of the forward exchange contracts were less than one year. In the previous year, market values of $€ 2$ million had remaining terms of more than one year; otherwise the remaining terms were less than one year. The change in fair value for determining ineffectiveness corresponds to the change in fair value of the designated component. Hedging did not result in any significant ineffectiveness as of the reporting date.

The notional values represent the aggregate of all purchase and selling amounts for derivatives. The notional values shown are not netted.

Derivative Financial Instruments
(in € million)

	Nominal value		Positive fair value		Negative fair value
	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024
Foreign exchange contracts (current)	1,159	1,275	17	13	$-10$	$-26$
Foreign exchange contracts (non-current)	-	-	-	-	-	-
Derivatives designated as cash flow hedges	1,159	1,275	17	13	$-10$	$-26$
Foreign exchange contracts (current)	871	1,089	9	8	$-5$	$-9$
Foreign exchange contracts (non-current)	137	-	2	-	-	-
Derivatives not included in a hedging relationship	1,008	1,089	11	8	$-5$	$-9$
Total derivative financial instruments	2,167	2,364	28	21	$-15$	$-35$

Positive fair values are recognized in the balance sheet under other financial assets (current and noncurrent), and negative fair values under other financial liabilities (current and non-current). The average hedging rates for major currency pairs as of the balance sheet date can be viewed in the table below.

Average Hedging Rates
(in $€$ million)

Currency pairings	Dec. 31, 2023		Dec. 31, 2024
	Nominal value	Average hedging rate in euros	Nominal value	Average hedging rate in euros
EUR/USD	200	1.1036	231	1.0940
EUR/GBP	79	0.8689	110	0.8533
EUR/CHF	76	0.9495	72	0.9444
EUR/CNH	63	7.7887	70	7.8592

By using forward exchange transactions to hedge exchange rate risks from future cash flows, exchange rate changes essentially affect the hedging reserve in equity and the fair values of the hedging transactions. The development of the hedging transactions recorded in other comprehensive income can be seen in the table below. The amounts recorded in reserves are recognized in profit or loss at the time at which the hedged transaction affects the profit or loss for the period. The reclassifications in the income statement were made into the operating result.

Cash Flow Hedge Reserve (Net of Deferred Taxes)

(in $€$ million)	As of Jan. 1	Hedge results	Reclassifications to the income statement	As of Dec. 31
2023	18	5	$-18$	5
2024	5	$-9$	$-5$	$-9$

If the euro had appreciated by $10 \%$ against all currencies as of December 31, 2024, the fair values of the currency forwards recognized directly within the hedging reserves in equity would have increased by $€ 73$ million (previous year: $€ 62$ million). If the euro had depreciated by $10 \%$, the fair values of the

currency forwards recognized directly within the hedging reserves in equity would have decreased by $€ 90$ million (previous year: $€ 73$ million). An appreciation of the euro by $10 \%$ would have decreased the value of currency forwards not included in a hedging relationship by $€ 6$ million within the financial result (previous year: $€ 4$ million). A corresponding decrease in the value of the euro by $10 \%$ would have increased the financial result by $€ 7$ million (previous year: $€ 7$ million). The effects on comprehensive income and consolidated equity from the changes in individual currency pairs as of the balance sheet date can be viewed in the table below.

Sensitivity Analysis of Foreign Exchange Rate Changes
(in € million)

As of Dec. 31, 2024	USD	GBP	CHF	CNH
	EUR +10\%	EUR +10\%	EUR +10\%	EUR +10\%
Equity	21	10	7	7
Net income	-	$-1$	$-2$	-
	EUR -10\%	EUR -10\%	EUR -10\%	EUR -10\%
Equity	$-26$	$-12$	$-8$	$-8$
Net income	-	1	2	-
As of Dec. 31, 2023	USD	GBP	CHF	CNH
	EUR +10\%	EUR +10\%	EUR +10\%	EUR +10\%
Equity	17	6	7	6
Net income	-	$-2$	$-4$	-
	EUR -10\%	EUR -10\%	EUR -10\%	EUR -10\%
Equity	$-20$	$-8$	$-9$	$-7$
Net income	-	2	4	-

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of the interest-bearing financial instrument will fluctuate due to changes in the market interest rate. Beiersdorf has a securities portfolio that is essentially classified as "measured at amortized cost (AC)." Therefore, an interest-induced change in market value has no effect on profit after tax or on equity. The hypothetical interest rate risk in relation to the future cash flows of variable-interest financial instruments is determined by a parallel shift in the yield curve of 100 basis points in both directions. Beiersdorf uses variable-interest financial instruments such as money market funds as well as bank, overnight, and short-term deposits which are measured at fair value through profit or loss. Since Beiersdorf only uses these as part of daily liquidity planning, the hypothetical interest rate risk with regard to future cash flows is negligible.

Default Risk

The Beiersdorf Group is exposed to default risk within the scope of its financing activities and in its operations. The maximum default risk can be seen from the carrying amount of each financial asset recognized in the balance sheet. The total carrying amount of the financial assets was $€ 6,793$ million as of December 31, 2024 (previous year: $€ 6,829$ million).

A three-stage process is applied under IFRS 9. A risk provision is recognized based on either the expected credit losses over the next 12 months (Stage 1), or the expected credit losses over the lifetime of the financial asset if there is a significant increase in credit risk from initial recognition (Stage 2) or the financial asset has become credit impaired (Stage 3). Potential default risks relating to the investment of

the Group's liquid funds are limited by only making investments with counterparties deemed reliable. Counterparty risk is monitored on the basis of ratings and the counterparties' liable capital as well as continuously updated risk indicators. These parameters are used to determine maximum amounts for investments with partner banks and securities issuers (counterparty limits), which are regularly compared with the investments actually made throughout the Group. We have invested the majority of our liquidity in low-risk investments (such as government and corporate bonds).

Impairments based on expected credit losses over the next 12 months are recognized on securities measured at amortized cost or at fair value through other comprehensive income. The estimate is based on ratings and continuously updated risk indicators. Current CDS spreads and the issuers' bond spreads are also used in the calculation.

The development of these valuation allowances can be viewed in the table below.

Valuation Allowances

(in € million)

	Securities in the AC category	Securities in the FVOCI category	Total
Carrying amount Jan. 1, 2023	6	1	7
Currency translation adjustment	-	-	-
Additions	-	-	-
Utilization	-	-	-
Reversals	1	1	2
Carrying amount Dec. 31, 2023/Jan. 1, 2024	5	-	5
Currency translation adjustment	-	-	-
Additions	-	-	-
Utilization	-	-	-
Reversals	1	-	1
Carrying amount Dec. 31, 2024	4	-	4

Financial assets such as cash and cash equivalents include bank balances and very short-term liquid investments. These belong to the "at amortized cost" category. Given the very short terms (e.g., due on demand) and the creditworthiness of our contractual partners, no impairment was identified based on expected credit losses.

The simplified approach is used for determining impairments on trade receivables under IFRS 9. In this approach, expected credit losses over the entire lifetime of the financial instruments are determined. The expected losses are estimated separately in each business unit based on analyses of historical defaults and the age structure of the receivables as well as current economic developments and an assessment of the credit quality of individual customers.

Given that historical and expected default rates are low, the impairments did not have a material impact on assets or equity. We counter the risk of bad debts through detailed monitoring of our customer relationships, active receivables management, and the selective use of trade credit insurance.

The simplified approach under IFRS 9 is also used to determine impairments on lease receivables. We estimate the risk of credit defaults by lessees to be very low. Moreover, the lease payments are secured via the value of the property. We have recognized a total valuation allowance of $€ 0$ million.

Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulties in meeting the obligations associated with its financial liabilities. As a result of the large amount of cash and cash equivalents as well as securities held as of the balance sheet date, the Beiersdorf Group is not currently exposed to any liquidity risk. Additionally, in order to ensure the liquidity and financial flexibility of the Beiersdorf Group at all times, liquidity reserves are maintained in the form of credit lines.

The payment terms for financial liabilities largely expire within the next 12 months. The future undiscounted cash outflows from trade payables are due within one year and amount to $€ 2,571$ million as of the reporting date (previous year: $€ 2,234$ million). Non-current financial liabilities primarily comprise lease liabilities. As of December 31, 2024, future undiscounted lease liabilities with a remaining term of up to one year amounted to $€ 73$ million (previous year: $€ 61$ million), those with a remaining term of more than one year and up to five years to $€ 143$ million (previous year: $€ 134$ million), and those with a remaining term of more than five year to $€ 45$ million (previous year: $€ 48$ million). Derivative financial liabilities are also predominantly short-term. Of the nominal values totalling $€ 2,364$ million (previous year: $€ 2,167$ million), all cash outflows are expected within the next 12 months. In the previous year, cash outflows of $€ 2,030$ million were planned within the next 12 months and $€ 137$ million within the next 12 to 24 months.

Other Disclosures

31 Contingent Liabilities, Other Financial Obligations, and Legal Risks

Changes in Liabilities from Financing Activities
(in $€$ million)

	Dec. 31, 2022	Cash-changes	Non-cash changes			Dec. 31, 2023
		in cash flow from financing activities	Exchange rate effects	Changes in the scope of consolidation	Other changes ${ }^{1}$
Loan liabilities	367	$-184$	-	-	-	183
Lease liabilities	191	$-68$	$-2$	-	112	233

	Dec. 31, 2023	Cash-changes	Non-cash changes			Dec. 31, 2024
		in cash flow from financing activities	Exchange rate effects	Changes in the scope of consolidation	Other changes ${ }^{1}$
Loan liabilities	183	$-153$	-	-	-	30
Lease liabilities	233	$-75$	2	-	75	235

${ }^{1}$ The other changes in the lease liabilities item mainly include additions and non-cash interest expenses in the reporting period. Interest on loan liabilities was recognized in full in cash flow from financing activities in the financial year.

Other Financial Obligations

The contingent liabilities under guarantees amounted to $€ 71$ million (previous year: $€ 107$ million).
Lease expenses in 2024 include expenses for short-term leases of $€ 32$ million (previous year: $€ 27$ million), expenses for leases of low-value assets of $€ 3$ million (previous year: $€ 3$ million), and expenses from variable lease payments of $€ 14$ million (previous year: $€ 10$ million). Total cash outflow for leases in 2024 was $€ 124$ million (previous year: $€ 108$ million).

Legal Risks

The action brought by the insolvency administrator of Schlecker e.K. pending since 2016 in relation to completed German antitrust proceedings was dismissed at first and second instance. Following the plaintiff's appeal against denial of leave to appeal, the Federal Court of Justice (BGH) granted leave to appeal without giving reasons. The BGH overturned the appeal judgment and referred the case back to the second instance for a new decision. The proceedings are also directed against six other companies. It includes a claim for damages jointly and severally against all defendants in the amount of around $€ 200$ million plus interest. Decisions on further claims for damages asserted in the courts of first and second instance in connection with these antitrust proceedings are still pending. In one of these proceedings, the Schleswig-Holstein Higher Regional Court issued a judgment on October 21, 2024 in which Beiersdorf was ordered to pay around $€ 0.2$ million plus interest. This judgment is not yet final. Beiersdorf continues to dispute the claims.

In addition to the provisions for legal disputes and disputed tax positions recognized in other provisions and income tax liabilities, there are contingent liabilities due to disputed indirect taxes in Brazil and excise taxes in Germany which were not recognized because it is believed that the asserted claims are unfounded and cannot be enforced.

Estimates regarding the course and outcome of legal disputes and tax and customs audits are associated with considerable difficulties and uncertainties. Results that deviate from our expectations may have an impact on the amount of costs and provisions or liabilities recognized. As at the reporting date, we assume that, based on the information currently available, no further significant charges are to be expected for the Group.

32 Employees and Personnel Expenses

The breakdown of employees by function is as follows:

Number of Employees as of Dec. 31
Full-time-equivalent (FTEs)

	2023	2024
Production, supply chain, and quality management	8,403	8,657
Marketing and sales	7,815	8,118
Research and development	1,686	1,841
Other functions	4,054	4,175
	$\mathbf{2 1 , 9 5 8}$	$\mathbf{2 2 , 7 9 1}$

Average Number of Employees during the Year
Full-time-equivalent (FTEs)

	2023	2024
Production, supply chain, and quality management	8,313	8,558
Marketing and sales	7,779	8,029
Research and development	1,660	1,791
Other functions	3,991	4,084
	$\mathbf{2 1 , 7 4 3}$	$\mathbf{2 2 , 4 6 2}$

Personnel expenses amounted to $€ 1,894$ million (previous year: $€ 1,788$ million). This amount breaks down into wages and salaries of $€ 1,551$ million (previous year: $€ 1,474$ million), social security expense of $€ 235$ million (previous year: $€ 213$ million), and pension expense of $€ 108$ million (previous year: $€ 101$ million). A breakdown of employees by business segment can be found in the segment reporting.

33 Auditor's Fees

The Annual General Meeting on April 18, 2024, elected PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft as the auditors for the annual and consolidated financial statements for financial year 2024. PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft is Beiersdorf's auditor for the first time for this financial year.

The following table provides an overview of the total fees for the auditors of the PwC network of companies and the share attributable to PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft ("PwC GmbH" in short):
Fees Paid to the Group Auditors
(in € thousand)

	2024
Audit services	4,897
thereof PwC GmbH	1,372
Other assurance services	664
thereof PwC GmbH	613
Tax advisory services	203
thereof PwC GmbH	-
Other services	42
thereof PwC GmbH	38
Total	5,806
Total - thereof PwC GmbH	2,023

Other assurance services provided by PwC GmbH mainly relate to the voluntary review of the condensed interim financial statements as at June 30, 2024 and the limited assurance review of the non-financial reporting.

The other services provided by PwC GmbH mainly relate to general, company-unspecific access to training material and specialized information.

34 Declaration of Compliance with the German Corporate Governance Code

In December 2024, Beiersdorf Aktiengesellschaft's Executive Board and Supervisory Board issued their Declaration of Compliance with the recommendations of the Government Commission on the German Corporate Governance Code for financial year 2024 in accordance with § 161 AktG. The Declaration of Compliance was made permanently accessible to shareholders on the company's website at www.beiersdorf.com/declaration_of_compliance.

35 Related Party Disclosures

Related parties

The following individuals and entities are related parties of Beiersdorf Aktiengesellschaft as defined by IAS 24:

• Members of the Executive and Supervisory Boards of Beiersdorf Aktiengesellschaft, as well as their immediate family members and companies they control

• Consolidated and non-consolidated subsidiaries, as well as associates of Beiersdorf Aktiengesellschaft

• maxingvest GmbH \& Co. KGaA with its subsidiaries (particularly Tchibo Group) as the indirect controlling parent of Beiersdorf Aktiengesellschaft, as well as BBG Beteiligungsgesellschaft mbH as the direct controlling parent of Beiersdorf Aktiengesellschaft

• Wolfgang Herz as the ultimate controlling related party of Beiersdorf Aktiengesellschaft and Michael Herz as an individual who has significant influence over maxingvest GmbH \& Co. KGaA, as well as their immediate family members and companies, joint venture, and associates they control
• TROMA Alters- und Hinterbliebenenstiftung (TROMA) as the plan assets to meet the obligations of Beiersdorf Aktiengesellschaft in relation to retirement pensions, disability pensions, and surviving dependents' pensions
• Metzler Trust e.V. as a pension fund delivering post-employment benefits to employees - on the basis of a contractual trust agreement (CTA), Metzler Trust e.V. holds assets to cover existing pension obligations in Germany and other long-term benefits for employees

The members of the Executive and Supervisory Boards of Beiersdorf Aktiengesellschaft are listed in "Beiersdorf Aktiengesellschaft Boards."

The shares in subsidiaries and associates held by Beiersdorf Aktiengesellschaft are reported in the "Shareholdings" section.

Beiersdorf Aktiengesellschaft is controlled by maxingvest GmbH \& Co. KGaA as the ultimate controlling party and included in that company's consolidated financial statements.

Transactions with Related Parties

Remuneration for members of management in key positions
The total remuneration payable to the members of the Executive Board is composed of fixed and variable elements. The fixed remuneration, which is not tied to performance, comprises the base remuneration plus ancillary benefits. The variable remuneration in 2024 is composed of a short-term variable bonus with annual targets (Variable Bonus) and a long-term variable bonus (LTP), as well as a multi-annual bonus (MAB) in individual cases; all these components are paid as cash remuneration. In addition, the members of the Executive Board may be offered a reappointment bonus that may also be tied to performance. No additional pension commitments are made to the serving members of the Executive Board.

The base remuneration is a fixed annual amount paid in cash in 12 equal instalments at the end of each calendar month. The ancillary benefits include customary non-cash benefits such as the provision of a company car and the reimbursement of certain costs incurred when a member of the Executive Board relocates their usual place of work or place of residence.

The Variable Bonus is subject to a one-year measurement period and is paid out after the Annual General Meeting in the year following the financial year to which it relates. It is composed of joint and individual performance criteria that are tied to the company's financial (especially sales and EBIT margin) and non-financial performance, as well as the strategic and operational development of the Consumer Business Segment. For the LTP, the members of the Executive Board receive a multi-year bonus that is measured on the basis of joint target values for strategic criteria after a (one-time) fouryear bonus period from 2021 to 2024 (LTP 2021-2024). The targets may be weighted individually depending on a member's duties. Above an overall target achievement of $90 \%$, achievement of the aforementioned strategic targets is weighted with the achievement of the performance metrics of sales and outperformance of the skin care market (if target achievement for these is $100 \%$ or more). The LTP 2021-2024 is due for payment to all serving members of the Executive Board after the 2025 Annual General Meeting. In the reporting period, an MAB was allocated in one case, the multi-annual term for

which expired at the end of the reporting period. The performance criteria for this MAB were based on the regional responsibilities of the Executive Board member concerned.

With the amendment of the remuneration system, the Supervisory Board resolved to introduce a new long-term variable remuneration from 2025. This consists of annual tranches, each of which has a measurement period of four years and will be paid out after the Annual General Meeting following the last year of this period. For each tranche, the Supervisory Board will define financial and non-financial performance criteria, which are derived mainly from the implementation of the corporate strategy.

The members of the Supervisory Board receive fixed cash remuneration plus an attendance fee for participating in the meetings of the Supervisory Board and its committees. The employee representatives on the Supervisory Board additionally receive salaries on the basis of their existing employment contracts.

The expenses recognized in accordance with IFRS in financial years 2023 and 2024 for the remuneration of the members of the Executive and Supervisory Boards serving in the reporting period were as follows:

Expenses for Remuneration of the Executive and Supervisory Board under IFRS
(in € thousand)

	2023	2024
Executive Board
Short-term remuneration ${ }^{2}$	10,035	10,815
Long-term remuneration ${ }^{2}$	11,912	12,794
Benefits after termination of the service agreement	0	0
Total	21,947	23,609
Supervisory Board
Fixed remuneration and attendance fee ${ }^{3}$	1,664	1,714
Expenses for the boards in total	23,611	25,323

${ }^{1}$ Base remuneration, ancillary benefits and other remuneration, short-term variable bonus.
${ }^{2}$ Including MAB (in one case).
${ }^{3}$ Including committee work.
For the remuneration of the Executive Board, provisions of $€ 2,708$ thousand (previous year: $€ 3,968$ thousand) for the short-term variable remuneration and $€ 39,727$ thousand (previous year: $€ 27,234$ thousand) for the long-term variable remuneration were recognized at the reporting date. A total of $€ 50,781$ thousand (previous year: $€ 50,845$ thousand) has been accrued for pension obligations to former members of the Executive Board and their surviving dependents.

In accordance with the provisions of German commercial law (§§ 285 no. 9a and 314 (1) no. 6a Handelsgesetzbuch (German Commercial Code, HGB)), the members of the Supervisory Board received remuneration totaling $€ 1,714$ thousand (previous year: $€ 1,664$ thousand) in fiscal year 2024 and the members of the Executive Board received remuneration totaling $€ 50,107$ thousand (previous year: $€ 11,185$ thousand; remuneration granted adapted to recommendations of German Accounting Standard No. 17; DRS 17). The year-on-year increase in the remuneration paid to the members of the Executive Board was primarily attributable to the LTP 2021-2024 that was due for payment.

Remuneration, including long-term variable remuneration, to members of the Executive Board who had stepped down prior to the reporting period ( $\S \S 285$ no. 9 b and 314 (1) no. 6 b HGB) totaled $€ 4,637$ thousand (previous year: $€ 6,721$ thousand).

Further information on the individual remuneration paid to the members of the Executive and Supervisory Boards serving in the reporting period can be found in the audited remuneration report published in this Annual Report.

Following his departure from the Executive Board and the termination of his service agreement on June 30, 2025, Patrick Rasquinet will remain available to the group, in particular to La Prairie, in an advisory capacity for a transitional period (daily rate of CHF 3,500). Otherwise, and except for the granting of the remuneration disclosed in this section and in the remuneration report, there were no material transactions between the members of the Executive or Supervisory Boards of Beiersdorf Aktiengesellschaft and the companies of the Beiersdorf Group in financial year 2024.

The members of the Executive and Supervisory Boards may purchase the company's dividend-bearing shares on the open market. If they owned shares on the relevant date, they received the dividend of $€ 1.00$ per no-par-value share resolved by the 2024 Annual General Meeting.

Transactions with subsidiaries and associates
Transactions and balances between Beiersdorf Aktiengesellschaft and those of its subsidiaries that qualify as related parties were largely eliminated in the course of consolidation and are not presented here.

For reasons of materiality, a small number of subsidiaries were not consolidated. There were the following relevant transactions with these companies:

• Beiersdorf Shared Services GmbH provided accounting and IT services to some of the nonconsolidated subsidiaries.
• Beiersdorf Aktiengesellschaft provided central services (including HR, legal, and travel portal) to some of the non-consolidated subsidiaries and allowed them to use some office space.
• Some of the non-consolidated subsidiaries are part of the central cash pooling and management system of Beiersdorf Aktiengesellschaft.
• Beiersdorf Hautpflege GmbH operates two NIVEA Haus flagship stores in Hamburg and Berlin, where customers can obtain cosmetic applications and purchase products. In this context, it received a remuneration from Beiersdorf Aktiengesellschaft in the amount of approximately $€ 3.3$ million (previous year: approx. $€ 3.2$ million). In addition, goods were sold to Beiersdorf Hautpflege GmbH. Beiersdorf Aktiengesellschaft acquired vouchers for the NIVEA Haus from Beiersdorf Hautpflege GmbH, as well as special products and packaging for use in the employee product shop. Lastly, against settlement, Beiersdorf Hautpflege GmbH accepted vouchers from customers that the latter had received from Beiersdorf Aktiengesellschaft. At the balance sheet date, there were receivables from Beiersdorf Hautpflege GmbH amounting to approx. $€ 0.03$ million (previous year: approximately $€ 0.1$ million) and liabilities amounting to approx. $€ 3.3$ million (previous year: approximately $€ 3.0$ million).
• Beiersdorf Immobilienentwicklungs GmbH provided services in connection with implementing construction projects to Beiersdorf Aktiengesellschaft and one consolidated subsidiary.
• Beiersdorf Dermo Medical GmbH provided commercial services to Beiersdorf Aktiengesellschaft in return for payment.
• tesa ME FZE (United Arab Emirates) provided commercial services to tesa SE.

As the controlling party, Beiersdorf Aktiengesellschaft has concluded profit and loss transfer agreements with the following of its subsidiaries: Phanex Handelsgesellschaft mit beschränkter Haftung, Beiersdorf Manufacturing Berlin GmbH, La Prairie Group Deutschland GmbH, Beiersdorf Shared Services GmbH, Beiersdorf Manufacturing Hamburg GmbH, and Beiersdorf Manufacturing Leipzig GmbH (formerly named Beiersdorf Manufacturing Waldheim GmbH).

Various companies in the tesa Business Segment acquired goods from associate Alkynes Co. Ltd., South Korea for a total amount of approximately $€ 13.4$ million (previous year: approximately $€ 11.7$ million). Small quantities of goods were also sold to Alkynes Co. Ltd. At the balance sheet date, liabilities towards Alkynes Co. Ltd. amounted to approximately $€ 1.7$ million (previous year: approximately $€ 1.7$ million).

Transactions with maxingvest GmbH \& Co. KGaA and its associates
Beiersdorf Shared Services GmbH provided IT services for TCHIBO GmbH and Tchibo Coffee International Ltd. in return for a remuneration of approximately $€ 2.9$ million (previous year: approximately $€ 2.6$ million) and approximately $€ 0.4$ million (previous year: approximately $€ 0.4$ million) respectively. As at the reporting date, there were receivables from TCHIBO GmbH and Tchibo Coffee International Ltd. amounting to approximately $€ 2.9$ million (previous year: approx. $€ 0.9$ million) and approximately $€ 0.4$ million (previous year: approximately $€ 0.4$ million) respectively.

In addition, the following transactions were conducted with maxingvest GmbH \& Co. KGaA and its affiliates:

• Purchase of goods and services from companies of the Tchibo Group
• Rental of an office in Hong Kong from a company of the Tchibo Group
• Expenses for settling invoices of a Tchibo Group company in Hong Kong, which were reimbursed

In addition, Beiersdorf Aktiengesellschaft and its associates and maxingvest GmbH \& Co. KGaA and its associates pooled purchase volumes to achieve cost benefits, especially in the area of media procurement (print, TV, and digital advertising). Experience was shared in other areas as well.

As direct holder of shares in Beiersdorf Aktiengesellschaft, BBG Beteiligungsgesellschaft mbH received the dividend of $€ 1.00$ per no-par-value share resolved upon by the 2024 Annual General Meeting.

Transactions with TROMA Alters- und Hinterbliebenenstiftung

On the basis of the investment strategy defined by the board of trustees - composed of representatives of the company and of the Group Works Council - Beiersdorf Aktiengesellschaft supported TROMA in making financial investments during the reporting period. In addition, short-term deposits of TROMA with Beiersdorf Aktiengesellschaft in the amount of $€ 163$ million (incl. interest) were repaid in 2024. The Foundation also supports Beiersdorf Aktiengesellschaft in meeting its pension obligations. Details of this are reported in "Provisions for pensions and other post-employment benefits."

In financial year 2024, Beiersdorf Aktiengesellschaft and TROMA completed the sale to TROMA of real estate at the site of Beiersdorf's former headquarters in Hamburg (purchase price: $€ 48$ million). The value was determined by obtaining an external expert opinion. In addition, Beiersdorf Aktiengesellschaft acquired from TROMA an undeveloped lot at the new Beiersdorf Campus in Hamburg (purchase price: $€ 2.7$ million). Beiersdorf Aktiengesellschaft also leased parking lots and small amounts of office space in Hamburg from TROMA, for which it paid rent.

In return for the payment of personnel expenses, TROMA Alters- und Hinterbliebenenstiftung uses employees of Beiersdorf Aktiengesellschaft to conduct its activities.

36 Shareholdings in Beiersdorf Aktiengesellschaft

The following shareholdings were reported to Beiersdorf Aktiengesellschaft in accordance with the provisions of the Wertpapierhandelsgesetz (German Securities Trading Act, WpHG) up to the date of preparation of the financial statements.

With voting rights notifications pursuant to $\S \S 33$ et seq. WpHG dated June 16, 2023, Max und Ingebung Herz Stiftung (Hamburg, Germany), IH Zweite GmbH (Hamburg, Germany) as well as Wolfgang Herz, Michael Herz, Alexander Herz, Benjamin Herz, Maximilian Herz, Paul Herz, and Svenja Haux each disclosed that they had exceeded the 50\% threshold as of June 15, 2023. The notifying parties indicated for themselves - and in the case of Michael Herz, Wolfgang Herz, and Max und Ingebung Herz Stiftung also for a number of subsidiaries - that they each held a total share of voting rights of $51.19 \%(128,991,406$ voting rights).

2.

During financial year 2024, BlackRock, Inc., Wilmington, DE, USA, submitted several voting rights notifications in accordance with $\S 33$ et seq. WpHG through which BlackRock, Inc. - on its own behalf and on behalf of a number of subsidiaries - disclosed on several occasions that the companies listed in the notifications had exceeded or fallen below the threshold of $3 \%$ of the voting rights in Beiersdorf Aktiengesellschaft. According to the latest notification dated October 2, 2024, on October 1, 2024, a $3.44 \%$ share of voting rights stemming from shares in Beiersdorf Aktiengesellschaft was attributable to BlackRock, Inc. and a number of its subsidiaries in accordance with $\S 34 \mathrm{WpHG}$. In addition, at that point in time, BlackRock, Inc. and a number of its subsidiaries were direct or indirect holders of financial instruments pursuant to $\S 38 \mathrm{WpHG}$ relating to $0.01 \%$ of voting rights stemming from shares in Beiersdorf Aktiengesellschaft.
3.

In accordance with § 25 (1) sentence 3 in conjunction with § 21 (1) sentence 1 WpHG (former version), Beiersdorf Aktiengesellschaft also announced that it had exceeded the threshold of $5 \%$ of the voting rights in its own company on February 3, 2004, and that a share of $9.99 \%$ has been attributable to it since then. The own shares held by the company do not bear voting or dividend rights in accordance with $\S 71 \mathrm{~b} A k t G$.

All releases on voting rights notifications in accordance with $\S 40$ (1) WpHG that Beiersdorf Aktiengesellschaft has made since January 3, 2018, are available under www.beiersdorf.com/investors/ financial-reports/voting-rights-notifications.

Report on Post-Balance Sheet Date Events

There were no reportable events after the reporting date.

Beiersdorf Aktiengesellschaft Boards

Supervisory Board
Name	Profession	Memberships in Supervisory Boards and other Supervisory Committees
Donya-Florence Amer (since April 18, 2024)	Member of the Executive Board/Chief Information Officer (CIO) and Chief Human Resources Officer (CHRO), Hapag-Lloyd Aktiengesellschaft
Hilde Cambier (since April 18, 2024)	Vice President Marketing New Product and Business Development, tesa Management Unit Consumer
Hong Chow	Head of China \& International, Healthcare, Merck KGaA
Reiner Hansert (until April 18, 2024)	Business Partner tesa \& La Prairie Group Corporate Brand Protection Unit, Beiersdorf AG, Data Protection Officer, Beiersdorf AG	Member of the Supervisory Board: maxingvest GmbH \& Co. KGaA ${ }^{1}$
Wolfgang Herz	General Manager Participia Holding GmbH	Chairman of the Supervisory Board: Blume 2000 SE ${ }^{1}$ TOPP Holding $\mathrm{AG}^{1}$ Deputy Chairman of the Supervisory Board: Libri GmbH (until February 21, 2024) Member of the Supervisory Board: maxingvest GmbH \& Co. KGaA ${ }^{1}$ TCHIBO GmbH
Uta Kemmerich-Keil	Member of the Supervisory Board/Advisory Board/Administrative Board of various companies	Member of the Supervisory Board: Biotest AG (until September 30, 2024) ${ }^{2}$ Schott $\mathrm{AG}^{1}$ Affimed NV, Netherlands (until June 30, 2024) ${ }^{2}$ Karo Healthcare AB, Sweden ${ }^{1}$ Member of the Administrative Board (Verwaltungsrat): Klosterfrau Zürich AG, Switzerland ${ }^{1}$
Andreas Köhn (until April 18, 2024)	Chairman of the Works Council, Beiersdorf Manufacturing Hamburg GmbH
Jan Koltze	Regional Head, Industriegewerkschaft Bergbau, Chemie, Energie (IG BCE)	Member of the Supervisory Board: Aurubis $\mathrm{AG}^{2}$ ExxonMobil Central Europe Holding GmbH ${ }^{1}$ maxingvest GmbH \& Co. KGaA ${ }^{1}$
Dr. Dr. Christine Martel (until April 18, 2024)	Business Executive Officer (BEO)/General Manager, Nestlé Suisse S.A.
Olaf Papier	Chairman of the Works Council, Beiersdorf AG
Frédéric Pflanz ${ }^{2}$ Deputy Chairman	Managing Director/Chief Financial Officer, maxingvest GmbH \& Co. KGaA	Member of the Board of Directors: Cambiata Ltd., British Virgin Islands ${ }^{1}$ (until January 31, 2024)
Prof. Dr. Reinhard Püllath Chairman	Lawyer, P+P Pöllath + Partners	Chairman of the Supervisory Board: Elektrobau Muffingen GmbH ${ }^{1}$ maxingvest GmbH \& Co. KGaA (until March 21, 2024) ${ }^{1}$ Wanal GmbH \& Co. KGaA ${ }^{1}$ Member of the Supervisory Board: Wanal GmbH \& Co. Holding $\mathrm{KG}^{1}$
Doris Robben (since April 18, 2024)	Deputy Chairwoman of the Works Council, tesa SE
Prof. Manuela Rousseau Deputy Chainwoman (until April 18, 2024)	Senior Advisor Global Diversity \& Inclusion, Beiersdorf AG, Professor at the Academy of Music and Theatre, Hamburg
Kirstin Weiland	Process Engineer Converting, tesa Manufacturing Hamburg GmbH	Member of the Supervisory Board: tesa SE (intragroup) ${ }^{1}$
Barbara Wentzel ${ }^{3}$ Deputy Chainwoman (since April 18, 2024)	Member of the Works Council, Beiersdorf AG

[^0]
[^0]: ${ }^{1}$ Non-listed.
${ }^{2}$ Listed.
${ }^{3}$ The Supervisory Board's diversity officers.

Supervisory Board Committees

Members of the Presiding Committee	Members of the Audit Committee	Members of the Finance Committee	Members of the Nomination Committee	Members of the Mediation Committee	Members of the Personnel Committee	Members of the Digital- and ESG Committee (since April 18, 2024)
Prof. Dr. Reinhard Pöllath Chairman	Uta Kemmerich- Keil Chainwoman (since April 18, 2024)	Frédéric Pflanz Chairman	Prof. Dr. Reinhard Pöllath Chairman	Prof. Dr. Reinhard Pöllath Chairman	Frédéric Pflanz Chairman	Donya-Florence Amer Chainwoman (since May 8, 2024)
Wolfgang Herz	Dr. Dr. Christine Martel Chainwoman (until April 18, 2024)	Reiner Hansert (until April 18, 2024)	Hong Chow	Olaf Papier	Hong Chow	Hilde Cambier
Frédéric Pflanz	Reiner Hansert (until April 18, 2024)	Uta Kemmerich- Keil	Uta Kemmerich- Keil (since April 18, 2024)	Frédéric Pflanz	Reiner Hansert (until April 18, 2024)	Uta Kemmerich-Keil
Prof. Manuela Rousseau (until April 18, 2024)	Jan Koltze (since April 18, 2024)	Jan Koltze (since April 18, 2024)	Dr. Dr. Christine Martel (until April 18, 2024)	Prof. Manuela Rousseau (until April 18, 2024)	Uta Kemmerich- Keil	Frédéric Pflanz
Barbara Wentzel (since April 18, 2024)	Olaf Papier	Dr. Dr. Christine Martel (until April 18, 2024)	Frédéric Pflanz	Barbara Wentzel (since April 18, 2024)	Andreas Köhn (until April 18, 2024)	Prof. Dr. Reinhard Pöllath (until May 8, 2024)
	Frédéric Pflanz	Olaf Papier			Olaf Papier (since April 18, 2024)	Doris Robben
	Prof. Dr. Reinhard Pöllath (since April 18, 2024)	Prof. Dr. Reinhard Pöllath (since April 18, 2024)			Doris Robben (since April 18, 2024)	Barbara Wentzel
					Kirstin Weiland

Executive Board

Name	Function	Responsibilities	Memberships $^{1}$
Vincent Warnery	CEO	Corporate Development \& Strategy Internal Audit Supply Chain \& Quality Assurance Research \& Development Derma Health Care Corporate Communication Sustainability Japan
Oswald Barckhahn	Europe USA/Canada	Europe USA/Canada
Astrid Hermann	Finance tesa SE	Finance \& Financial Control Legal \& Compliance IT tesa SE	Deputy Chairwoman of the Supervisory Board: tesa SE (intragroup) ${ }^{2}$ Member of the Supervisory Board: Stora Enso Oyj, Finland ${ }^{3}$
Nicola D. Lafrentz	Human Resources	Human Resources General Services \& Real Estate (Labor Director)
Grita Loebsack	NIVEA	Brand Management Digital Marketing Greater China/South Korea
Ramon A. Mirt	Emerging Markets	Latin America Africa Asia (excluding Greater China) Russia
Patrick Rasquinet	Luxury	La Prairie Chantecaille	Member of the Supervisory Board: Silhouette International Schmied AG, Austria ${ }^{4}$

${ }^{1}$ In connection with their Group management and supervisory duties, the members of the Executive Board of Beiersdorf Aktiengesellschaft also hold offices in comparable supervisory bodies at Group companies and other associated companies.
${ }^{2}$ Non-listed.
${ }^{3}$ Listed.

Hamburg, February 7, 2025
Beiersdorf Aktiengesellschaft
The Executive Board

Beiersdorf AG's Shareholding List

Fully Consolidated Subsidiaries

Germany

Name of the company	Registered office	Equity interest (in \%)
Beiersdorf Manufacturing Berlin GmbH	Berlin	100.00
La Prairie Group Deutschland GmbH	Düsseldorf	100.00
Beiersdorf Customer Supply GmbH	Hamburg	100.00
Beiersdorf Manufacturing Hamburg GmbH	Hamburg	100.00
Beiersdorf Shared Services GmbH	Hamburg	100.00
tesa Manufacturing Hamburg GmbH	Hamburg	100.00
tesa Werk Hamburg GmbH	Hamburg	100.00
WS Immobilien GmbH \& Co. KG	Hamburg	100.00
WINGMAN-STUDIOS GmbH	Hamburg	100.00
tesa nie wieder bohren GmbH	Hanau	100.00
Beiersdorf Beteiligungs GmbH	Leezen	100.00
tesa Grundstücksverwaltungsgesellschaft mbH \& Co. KG	Leezen	100.00
Beiersdorf Manufacturing Leipzig GmbH	Leipzig	100.00
tesa Online GmbH	Norderstedt	100.00
tesa SE	Norderstedt	100.00
tesa Werk Offenburg GmbH	Offenburg	100.00

Europe

Name of the company	Registered office	Equity interest (in \%)
Beiersdorf CEE Holding GmbH	AT, Vienna	100.00
Beiersdorf Ges mbH	AT, Vienna	100.00
La Prairie Group Austria GmbH	AT, Vienna	100.00
tesa GmbH	AT, Vienna	100.00
SA Beiersdorf NV	BE, Anderlecht	100.00
S-Biomedic NV	BE, Berse	92.53
tesa sa-nv	BE, Brussels	100.00
Beiersdorf Bulgaria EOOD	BG, Sofia	100.00
Beiersdorf AG	CH, Basel	100.00
Swiss Cosmetics Production AG	CH, Berneck	100.00
Pre SA	CH, Montreux	100.00
tesa tape Schweiz AG	CH, Urdorf	100.00
La Prairie Group AG	CH, Volketswil	100.00
La Prairie Operations AG	CH, Volketswil	100.00
Laboratoires La Prairie SA	CH, Volketswil	100.00
La Prairie Real Estate Holding AG	CH, Zurich	100.00
Beiersdorf spol. s.r.o.	CZ, Prague	100.00
tesa tape s.r.o.	CZ, Prague	100.00

Name of the company	Registered office	Equity interest (in \%)
tesa A/S	DK, Allerød	100.00
Beiersdorf A/S	DK, Copenhagen	100.00
Beiersdorf Manufacturing Argentina, S.L.	ES, Argentona	100.00
tesa tape S.A.	ES, Argentona	100.00
La Prairie Group Iberia S.A.U.	ES, Madrid	100.00
Beiersdorf Holding, S.L.	ES, Tres Cantos	100.00
Beiersdorf Manufacturing Tres Cantos, S.L.	ES, Tres Cantos	100.00
Beiersdorf S.A.	ES, Tres Cantos	100.00
Beiersdorf Oy	FI, Turku	100.00
tesa Oy	FI, Turku	100.00
La Prairie Group France S.A.S.	FR, Boulogne-Billancourt	100.00
tesa s.a.s.	FR, Lieusaint	100.00
Beiersdorf Holding France	FR, Paris	100.00
Beiersdorf s.a.s.	FR, Paris	99.93
CHANTECAILLE-Paris SARL	FR, Paris	100.00
Beiersdorf UK Ltd.	GB, Birmingham	100.00
Chantecaille (UK) Ltd.	GB, Chorleywood	100.00
La Prairie (UK) Limited	GB, London	100.00
tesa UK Ltd.	GB, Milton Keynes	100.00
Beiersdorf Hellas A.E.	GR, Athens	100.00
tesa tape A.E. i.L.	GR, Gerakas-/-Attikis	100.00
Beiersdorf d.o.o.	HR, Zagreb	100.00
Beiersdorf Kft.	HU, Budapest	100.00
tesa tape Ragasztószalag Termelő és Kereskedelmi Kft.	HU, Budapest	100.00
Alpa-BDF Ltd.	IL, Herzeliya	60.00
Beiersdorf ehf	IS, Reykjavik	100.00
Beiersdorf SpA	IT, Milan	100.00
Comet SpA	IT, Solbiate con Cagno	100.00
La Prairie s.r.l.	IT, Milan	100.00
tesa SpA	IT, Milan	100.00
Beiersdorf Kazakhstan LLP	KZ, Almaty	100.00
tesa tape UAB	LT, Vilnius	100.00
Beiersdorf Holding B.V.	NL, Amsterdam	100.00
Beiersdorf NV	NL, Amsterdam	100.00
tesa BV	NL, Hilversum	100.00
tesa AS	NO, Oslo	100.00
Beiersdorf Manufacturing Poznan Sp. z o.o.	PL, Poznan	100.00
Beiersdorf Shared Services Poland Sp. z o.o.	PL, Poznan	100.00
NIVEA Polska Sp. z o.o.	PL, Poznan	100.00
tesa tape Sp. z o.o.	PL, Poznan	100.00
Beiersdorf Portuguesa, Limitada	PT, Barcarena Queluz de Baixo	100.00
tesa Portugal - Produtos Adesivos, Lda.	PT, Paço de Arcos	100.00

Name of the company	Registered office	Equity interest (in \%)
Beiersdorf Romania s.r.l.	RO, Bucharest	100.00
tesa tape s.r.l.	RO, Cluj-Napoca	100.00
Beiersdorf d.o.o.	RS, Belgrade	100.00
Beiersdorf LLC	RU, Moscow	100.00
La Prairie Group (RUS) LLC	RU, Moscow	100.00
Beiersdorf Aktiebolag	SE, Gothenburg	100.00
Beiersdorf Nordic Holding AB	SE, Gothenburg	100.00
tesa AB	SE, Kungsbacka	100.00
Beiersdorf d.o.o.	SI, Ljubljana	100.00
tesa tape posrednistvo in trgovina d.o.o. i.L.	SI, Ljubljana	100.00
Beiersdorf Slovakia, s.r.o.	SK, Bratislava	100.00
Beiersdorf Ukraine LLC	UA, Kyiv	100.00

America
Name of the company	Registered office	Equity interest (in \%)
Beiersdorf S.A.	AR, Buenos Aires	100.00
tesa tape Argentina S.R.L.	AR, Buenos Aires	100.00
Beiersdorf S.R.L.	BO, Santa Cruz de la Sierra	100.00
tesa Brasil Ltda.	BR, Curitiba	100.00
Beiersdorf Indústria e Comércio Ltda.	BR, Itatiba	100.00
BDF NIVEA LTDA.	BR, São Paulo	100.00
Beiersdorf Canada Inc.	CA, Saint-Laurent	100.00
Chantecaille Beaute Canada Inc.	CA, Toronto	100.00
tesa tape Chile S.A.	CL, Las Condes	100.00
Beiersdorf S.A.	CL, Providencia	100.00
Beiersdorf S.A.	CO, Bogotá	100.00
tesa tape Colombia S.A.S.	CO, Cali	100.00
BDF Costa Rica, S.A.	CR, San José	100.00
Beiersdorf, SRL	DO, Santo Domingo	100.00
Beiersdorf S.A.	EC, Quito	100.00
BDF Centroamérica, S.A.	GT, Guatemala City	100.00
tesa tape Centro América S.A.	GT, Guatemala City	100.00
BDF México, S.A. de C.V.	MX, Mexico City	100.00
BSS HUB MÉXICO, S.C.	MX, Mexico City	100.00
Beiersdorf Manufacturing México, S.A. de C.V.	MX, Silao	100.00
tesa tape México, S.A. de C.V.	MX, Silao de la Victoria, Guanajuato	100.00
BDF Panamá, S.A.	PA, Panama City	100.00
Beiersdorf S.A.C.	PE, Lima	99.81
Beiersdorf S.A.	PY, Asunción	100.00
BDF El Salvador, S.A. de C.V.	SV, San Salvador	100.00
Beiersdorf Manufacturing, LLC	US, Cleveland, TN	100.00
Functional Coatings LLC	US, Grand Rapids, MI	100.00
tesa tape inc.	US, Grand Rapids, MI	100.00
Chantecaille Beaute Inc.	US, New York City, NY	100.00
Chantecaille Beaute Operations Inc.	US, New York City, NY	100.00
LaPrairie.com LLC	US, New York City, NY	100.00
La Prairie, Inc.	US, Piscataway, NJ	100.00
tesa Plant Sparta LLC	US, Sparta, MI	100.00
tesa TL LLC	US, Sparta, MI	100.00
Beiersdorf North America Inc.	US, Stamford, CT	100.00
Beiersdorf, Inc.	US, Stamford, CT	100.00
Panda International Holdings Inc.	US, Wilmington, DE	100.00
Pangolin Holdings Inc.	US, Wilmington, DE	100.00
tesa Functional Coatings Inc. USA	US, Wilmington, DE	100.00
Beiersdorf S.A.	UY, Montevideo	100.00

Name of the company	Registered office	Equity interest (in \%)
Beiersdorf Middle East FZCO	AE, Dubai	100.00
Beiersdorf Near East FZ-LLC	AE, Dubai	100.00
Beiersdorf Australia Ltd.	AU, North Ryde, NSW	100.00
Beiersdorf Health Care Australia Pty. Ltd.	AU, North Ryde, NSW	100.00
La Prairie Group Australia Pty. Ltd.	AU, Rosebery, NSW	100.00
tesa tape Australia Pty. Ltd.	AU, Wetherill Park	100.00
Beiersdorf Hong Kong Limited	CN, Hong Kong	100.00
Chantecaille Beaute Hong Kong Limited	CN, Hong Kong	100.00
La Prairie Hong Kong Limited	CN, Hong Kong	100.00
tesa tape (Hong Kong) Limited	CN, Hong Kong	100.00
Chantecaille (Shanghai) Co. Ltd.	CN, Shanghai	100.00
La Prairie (Shanghai) Co., Ltd.	CN, Shanghai	100.00
NIVEA (Shanghai) Company Limited	CN, Shanghai	100.00
tesa tape (Shanghai) Co., Ltd.	CN, Shanghai	100.00
tesa Plant (Suzhou) Co., Ltd.	CN, Suzhou	100.00
tesa tape (Suzhou) Co., Ltd.	CN, Suzhou	100.00
Beiersdorf Egypt for Trading JSC	EG, Cairo	100.00
Beiersdorf LLC	EG, Cairo	100.00
Beiersdorf Nivea Egypt LLC	EG, Cairo	100.00
Beiersdorf Ghana Limited	GH, Accra	100.00
P.T. Beiersdorf Indonesia	ID, Jakarta	100.00
tesa tapes (India) Private Limited	IN, Chennai Tami Nadu	100.00
Beiersdorf India Pvt. Limited	IN, Mumbai	51.00
Beiersdorf India Service Private Limited	IN, Mumbai	100.00
NIVEA India Pvt. Ltd.	IN, Mumbai	100.00
Beiersdorf Holding Japan Yugen Kaisha	JP, Tokyo	100.00
La Prairie Japan K.K.	JP, Tokyo	100.00
Nivea-Kao Co., Ltd.	JP, Tokyo	60.00
tesa tape KK	JP, Tokyo	100.00
Beiersdorf East Africa Limited	KE, Nairobi	100.00
Beiersdorf Korea Limited	KR, Seoul	100.00
Chantecaille Beaute Korea Ltd.	KR, Seoul	100.00
La Prairie Korea Limited	KR, Seoul	100.00
tesa tape Korea Limited	KR, Seoul	100.00
Beiersdorf S.A.	MA, Casablanca	100.00
Beiersdorf (Myanmar) Ltd.	MM, Rangoon	100.00
tesa tape Industries (Malaysia) Sdn. Bhd.	MY, Bandar Baru Bangi	96.25
tesa tape (Malaysia) Sdn. Bhd.	MY, Bandar Baru Bangi	96.25
Beiersdorf (Malaysia) SDN. BHD.	MY, Petaling Jaya	100.00
Beiersdorf Nivea Consumer Products Nigeria Limited	NG, Lagos	100.00
Beiersdorf Philippines Incorporated	PH, Taguig Bonifacio Global City	100.00
Beiersdorf Pakistan (Private) Limited	PK, Lahore	100.00

Africa/Asia/Australia
Name of the company	Registered office	Equity interest (in \%)
Turath Al-Bashara for Trading Limited (Skin Heritage for Trading)	SA, Jeddah	70.00
Beiersdorf Singapore Pte. Ltd.	SG, Singapore	100.00
Chantecaille Beaute Singapore Pte. Ltd.	SG, Singapore	100.00
tesa tape Asia Pacific Pte. Ltd.	SG, Singapore	100.00
Beiersdorf (Thailand) Co., Ltd.	TH, Bangkok	100.00
tesa tape (Thailand) Limited	TH, Bangkok	90.57
NIVEA Beiersdorf Turkey Kozmetik Sanayi ve Ticaret A.S.	TR, Istanbul	100.00
tesa Bant Sanayi ve Ticaret A.S.	TR, Istanbul	100.00
La Prairie (Taiwan) Limited	TW, Taipei	100.00
NIVEA (Taiwan) Ltd.	TW, Taipei	100.00
tesa Site Haiphong Company Limited	VN, Haiphong	100.00
tesa Vietnam Limited	VN, Hanoi	100.00
Beiersdorf Vietnam Limited Liability Company	VN, Ho Chi Minh City	100.00
Beiersdorf Consumer Products (Pty.) Ltd.	ZA, Umhlanga	100.00

Non-Consolidated Subsidiaries of Minor Significance and Other Investments

Germany
Name of the company	Registered office	Equity interest (in \%)
Dermanostic GmbH	Düsseldorf	9.71
Beiersdorf Dermo Medical GmbH	Hamburg	100.00
Beiersdorf Hautpflege GmbH	Hamburg	100.00
Beiersdorf Immo GmbH	Hamburg	100.00
Beiersdorf Immobilienentwicklungs GmbH	Hamburg	100.00
Phanex Handelsgesellschaft mbH	Hamburg	100.00
Tape International GmbH	Leezen	100.00
Europe
Name of the company	Registered office	Equity interest (in \%)
Skin Care Emerging Markets GmbH	AT, Vienna	100.00
DePoly SA	CH, Sion	5.55
The Salford Valve Company Ltd.	GB, York	13.20
Tartsay Beruházó Kft.	HU, Budapest	100.00
Beiersdorf AS	NO, Oslo	100.00
America
Name of the company	Registered office	Equity interest (in \%)
Beiersdorf S.A.	VE, Caracas	100.00

Africa/Asia/Australia
Name of the company	Registered office	Equity interest (in \%)
TESA ME FZE	AE, Dubai	100.00

Associated Companies of Minor Significance

Name of the company	Registered office	Equity interest (in \%)
Alkynes Co. Ltd. ${ }^{1}$	KR, Gyeonggi-do	31.43

[^0]
[^0]: ${ }^{1}$ At equity-evaluation

Attestations

Independent Auditor's Report

To Beiersdorf Aktiengesellschaft, Hamburg

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE GROUP MANAGEMENT REPORT

Audit Opinions

We have audited the consolidated financial statements of Beiersdorf Aktiengesellschaft, Hamburg, and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at 31 December 2024, and the consolidated statement of comprehensive income, consolidated statement of profit or loss, consolidated statement of changes in equity and consolidated statement of cash flows for the financial year from 1 January to 31 December 2024, and notes to the consolidated financial statements, including material accounting policy information. In addition, we have audited the group management report of Beiersdorf Aktiengesellschaft, which is combined with the Company's management report, for the financial year from 1 January to 31 December 2024. In accordance with the German legal requirements, we have not audited the content of those parts of the group management report listed in the "Other Information" section of our auditor's report.

In our opinion, on the basis of the knowledge obtained in the audit,

• the accompanying consolidated financial statements comply, in all material respects, with the IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) (the IFRS Accounting Standards) as adopted by the EU and the additional requirements of German commercial law pursuant to § [Article] 315e Abs. [paragraph] 1 HGB [Handelsgesetzbuch: German Commercial Code] and, in compliance with these requirements, give a true and fair view of the assets, liabilities, and financial position of the Group as at 31 December 2024, and of its financial performance for the financial year from 1 January to 31 December 2024, and
• the accompanying group management report as a whole provides an appropriate view of the Group's position. In all material respects, this group management report is consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our audit opinion on the group management report does not cover the content of those parts of the group management report listed in the "Other Information" section of our auditor's report.

Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the group management report.

Basis for the Audit Opinions

We conducted our audit of the consolidated financial statements and of the group management report in accordance with § 317 HGB and the EU Audit Regulation (No. 537/2014, referred to subsequently as "EU Audit Regulation") in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Group Management Report" section of our auditor's report. We are independent of the group entities in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements.

In addition, in accordance with Article 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements and on the group management report.

Key Audit Matters in the Audit of the Consolidated Financial Statements
Key Audit Matters in the Audit of the Consolidated Financial Statements
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the financial year from 1 January to 31 December 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our audit opinion thereon; we do not provide a separate audit opinion on these matters.

In our view, the matters of most significance in our audit were as follows:

1. Recoverability of the goodwill allocated to the group of cash-generating units "Chantecaille"
2. Accounting treatment of uncertain tax positions and other provisions in connection with taxes
3. Measurement of pension provisions

Our presentation of these key audit matters has been structured in each case as follows:

1. Matter and issue
2. Audit approach and findings
3. Reference to further information

Hereinafter we present the key audit matters:

1) Recoverability of the goodwill allocated to the group of cash-generating units "Chantecaille"

1. In the Company's consolidated financial statements goodwill allocated to the group of cashgenerating units "Chantecaille" in total amounting to EUR 279 million is reported under the "Intangible assets" balance sheet item. This Goodwill is tested for impairment by the Company once a year or when there are indications of impairment to determine any possible need for write-downs. The impairment test is carried out at the level of the group of cash-generating units to which this goodwill is allocated. The carrying amount of the group of cash-generating units, including goodwill, is compared with the corresponding recoverable amount in the context of the impairment test. The recoverable amount is generally determined using the value in use. The present value of the future cash flows from the group of cash-generating units normally serves as the basis of valuation. Present values are calculated using discounted cash flow models. For this purpose, the adopted budget planning of the Group forms the starting point which is extrapolated based on assumptions about long-term rates of growth. Expectations relating to future market developments and assumptions about the development of macroeconomic factors are also taken into account. The discount rate used is the weighted average cost of capital for the group of cash-generating units. The impairment test determined that it was necessary to recognize write-downs amounting to EUR 38 million on the group of cash-generating units "Chantecaille".

The outcome of this valuation is dependent to a large extent on the estimates made by the executive directors with respect to the future cash flows of the group of cash-generating units "Chantecaille", the discount rate used, the rate of growth and other assumptions, and is therefore subject to considerable uncertainty. Against this background and due to the complex nature of the valuation, this matter was of particular significance in the context of our audit.

1. As part of our audit, we assessed the methodology used for the purposes of performing the impairment test, among other things. After matching the future cash flows used for the calculation against the adopted budget planning of the Group, we discussed the appropriateness of the calculation with the Company's employees, including with respect to the assumed rates of growth, and assessed the responses with respect to general and sector-specific market expectations. We discussed and examined supplementary adjustments to the medium-term business plan for the purposes of the impairment test with the members of the Company's staff responsible. In the knowledge that even relatively small changes in the discount rate and the growth rate applied can have a material impact on the value of the entity calculated in this way, we focused our testing in particular on the parameters used to determine the discount rate applied and assessed the calculation model. We evaluated the growth rates by comparing general and sector-specific expectations with the assessments of the executive directors. In order to reflect the uncertainty inherent in the projections, we evaluated the sensitivity analyses performed by the Company.

Overall, the valuation parameters and assumptions used by the executive directors are in line with our expectations and are also within the ranges considered by us to be reasonable.
3. The Company's disclosures relating to the "Intangible assets" balance sheet item are contained in note 11 of the notes to the consolidated financial statements.

2) Accounting treatment of uncertain tax positions and other provisions in connection with taxes

1. The Beiersdorf Group operates in a large number of countries and is therefore subject to the respective country-specific tax laws and associated jurisdiction. The accounting treatment of current and deferred income taxes as well as indirect taxes have a material impact on the consolidated financial statements for financial year 2024. Occasionally, uncertainties arise as to how to tax law should be applied to a certain transaction or circumstance. The acceptability of a certain tax treatment under respective local tax law may not be known until when a competent tax authority or court decides in the future on the particular matter under consideration. Consequently, a dispute or an audit of a particular tax treatment by the tax authorities may impact the Company's accounting treatment of a current or deferred tax asset or liability.

The most significant amounts reported in the consolidated financial statements relate to provisions amounting to EUR 79 million reported under the "Other current provisions" balance sheet item in connection with tax litigation in Brazil, and tax receivables amounting to EUR 45 million reported under the "Income tax receivables" balance sheet item for taxes already paid in connection with the non-eligibility for tax purposes of a liquidation loss from a Chinese subsidiary in Austria. Furthermore, pursuant to IFRIC 23, additional income tax matters for tax litigations not yet concluded, for expected tax litigations or for tax matters arising from tax audits as well as additional tax matters relating to indirect taxes for customs audits are reported in accordance with IAS 37 , ,. Contingent liabilities have been disclosed in accordance with IAS 37.

The outcome of the tax and accounting assessment is dependent to a large extent on the estimates made by the executive directors with respect to the expected tax law court rulings and is thus subject to considerable uncertainty. Against this background and due to the complexity of the valuation, the accounting treatment of uncertain tax positions was of particular significance in the context of our audit.
2. As part of our audit, we evaluated, among other things, the internal processes for recording tax matters as well as the methods used for the determination, accounting treatment and measurement of taxes, including the accounting treatment of other provisions in connection with taxes. During our audit, we also evaluated in particular the processes established to ensure the recording and assessment of the outcome of the tax investigation proceedings. In addition, we have involved our internal experts for Tax Accounting with respect to the accounting effects. We also obtained regular updates from the internal tax department at Beiersdorf Aktiengesellschaft regarding current

developments and the reasons for the corresponding estimates of the outcome of the respective proceedings. We also evaluated the methods used for the determination, accounting treatment and measurement of deferred taxes and for the impairment testing of the tax items recognized. Furthermore, we obtained expert opinions from the external tax advisors appointed by the executive directors, discussed these with the responsible staff at the Company, and evaluated them with regard to the appropriateness of the underlying estimates and assumptions.

Based on our audit procedures, we were able to satisfy ourselves that the methods applied and measurement assumptions made by the executive directors for the determination and accounting treatment of tax positions, including the impairment testing of the deferred tax items and the accounting treatment of other provisions in connection with taxes, are substantiated and sufficiently documented.
3. The Company's disclosures relating to uncertain tax positions, the other provisions in connection with taxes and the contingent liabilities are contained in notes 9,28 and 31 of the notes to the consolidated financial statements.

3) Measurement of pension provisions

1. In the consolidated financial statements of the Company, provisions of EUR 328 million are reported under the "Provisions for pensions and other post-employment benefits" balance sheet item and pension assets amounting to EUR 27 million are reported under the "Other current financial assets" balance sheet item. The pension provisions comprise the obligations from defined benefit pension plans amounting to EUR 1,544 million and the plan assets of EUR 1,252 million. Due to effects from the asset ceiling of EUR 9 million the net pension obligation increased to EUR 301 million. Because of the overfunding in individual pension plans, this is then divided into the EUR 328 million provision reported under the "Provisions for pensions and other post-employment benefits" balance sheet item and an asset surplus of EUR 27 million reported under the "Other current financial assets" balance sheet item. Obligations under defined benefit plans are measured using the projected unit credit method. This requires assumptions to be made in particular about long-term rates of growth in salaries and pensions, average life expectancy and staff turnover. The discount rate must be determined by reference to market yields on high-quality corporate bonds with matching currencies and consistent maturities. This usually requires the data to be extrapolated, since sufficient longterm corporate bonds do not exist. The plan assets are measured at fair value, which in turn involves making estimates that are subject to estimation uncertainties. While pricing data can be referenced for listed securities included in the plan assets, expert appraisals in some cases have to be prepared to value real estate assets.

From our point of view, these matters were of particular significance in the context of our audit because the recognition and measurement of this significant item in terms of its amount are based to a large extent on estimates and assumptions made by the Company's executive directors.

1. As part of our audit we evaluated the actuarial expert reports obtained and the professional qualifications of the external experts, among other things. We also examined the specific features of the actuarial calculations and assessed the numerical data, the actuarial parameters and the valuation methods on which the valuations were based for compliance with the standard and appropriateness, in addition to other procedures. In addition, we analyzed the developments of the obligation and the cost components in accordance with actuarial expert reports in the light of changes occurring in the valuation parameters and the numerical data, and assessed their plausibility. For the purposes of our audit of the fair value of the plan assets we obtained bank and deposit confirmations and assessed the relevant expert valuations on a test basis.

Based on our audit procedures, we were able to satisfy ourselves that the estimates and assumptions made by the executive directors are substantiated and sufficiently documented.
3. The Company's disclosures relating to pension provisions are contained in note 27 of the notes to the consolidated financial statements.

Other Information

The executive directors are responsible for the other information. The other information comprises the following non-audited parts of the group management report:

• the statement on corporate governance pursuant to § 289 f HGB and § 315d HGB included in section "Corporate Governance Statement" of the group management report
• the non-financial statement to comply with $\S \S 289$ b to 289 e HGB and with $\S \S 315$ b to 315 c HGB included in the chapter "Combined Non-Financial Statement of the Beiersdorf Group and Beiersdorf AG" of the group management report
• the section "Adequacy and effectiveness of the Internal Control and Risk Management systems" in the chapter "Risk and Opportunities report" of the group management report
• the sub-section "Product-Highlights" within section "Research and Development" of the chapter "Foundation of the Group" of the group management report

The other information comprises further

• the remuneration report pursuant to § 162 AktG [Aktiengesetz: German Stock Corporation Act], for which the supervisory board is also responsible
• all remaining parts of the annual report - excluding cross-references to external information - with the exception of the audited consolidated financial statements, the audited group management report and our auditor's report

Our audit opinions on the consolidated financial statements and on the group management report do not cover the other information, and consequently we do not express an audit opinion or any other form of assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other information mentioned above and, in so doing, to consider whether the other information

• is materially inconsistent with the consolidated financial statements, with the group management report disclosures audited in terms of content or with our knowledge obtained in the audit, or
• otherwise appears to be materially misstated.

Responsibilities of the Executive Directors and the Supervisory Board for the Consolidated Financial Statements and the Group Management Report

The executive directors are responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRS Accounting Standards as adopted by the EU and the additional requirements of German commercial law pursuant to § 315e Abs. 1 HGB and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position, and financial performance of the Group. In addition, the executive directors are responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and misappropriation of assets) or error.

In preparing the consolidated financial statements, the executive directors are responsible for assessing the Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so.

Furthermore, the executive directors are responsible for the preparation of the group management report that, as a whole, provides an appropriate view of the Group's position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the executive directors are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a group management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the group management report.

The supervisory board is responsible for overseeing the Group's financial reporting process for the preparation of the consolidated financial statements and of the group management report.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Group Management Report

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the group management report as a whole provides an appropriate view of the Group's position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor's report that includes our audit opinions on the consolidated financial statements and on the group management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with § 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this group management report.

We exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements and of the group management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
• Obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures (systems) relevant to the audit of the group management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of the internal control and these arrangements and measures (systems), respectively.
• Evaluate the appropriateness of accounting policies used by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures.
• Conclude on the appropriateness of the executive directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the consolidated financial statements and in the group management report or, if such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to be able to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in a manner that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRS Accounting Standards as adopted by the EU and the additional requirements of German commercial law pursuant to § 315e Abs. 1 HGB.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming audit opinions on the consolidated financial statements and on the group management report. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinions.
• Evaluate the consistency of the group management report with the consolidated financial statements, its conformity with German law, and the view of the Group's position it provides.
• Perform audit procedures on the prospective information presented by the executive directors in the group management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by the executive directors as a basis for the prospective information, and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate audit opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with the relevant independence requirements, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

Other Legal and Regulatory Requirements

Report on the Assurance on the Electronic Rendering of the Consolidated Financial Statements and the Group Management Report Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB

Assurance Opinion

We have performed assurance work in accordance with § 317 Abs. 3a HGB to obtain reasonable assurance as to whether the rendering of the consolidated financial statements and the group management report (hereinafter the "ESEF documents") contained in the electronic file BDF_AG_KA+LB_ESEF-2024-12-31.zip and prepared for publication purposes complies in all material respects with the requirements of $\S 328$ Abs. 1 HGB for the electronic reporting format ("ESEF format"). In accordance with German legal requirements, this assurance work extends only to the conversion of the information contained in the consolidated financial statements and the group management report into the ESEF format and therefore relates neither to the information contained within these renderings nor to any other information contained in the electronic file identified above.

In our opinion, the rendering of the consolidated financial statements and the group management report contained in the electronic file identified above and prepared for publication purposes complies in all material respects with the requirements of $\S 328$ Abs. 1 HGB for the electronic reporting format. Beyond this assurance opinion and our audit opinion on the accompanying consolidated financial statements and the accompanying group management report for the financial year from 1 January to 31 December 2024 contained in the "Report on the Audit of the Consolidated Financial Statements and on the Group Management Report" above, we do not express any assurance opinion on the information contained within these renderings or on the other information contained in the electronic file identified above.

Basis for the Assurance Opinion

We conducted our assurance work on the rendering of the consolidated financial statements and the group management report contained in the electronic file identified above in accordance with § 317 Abs. 3a HGB and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of Financial Statements and Management Reports, Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB (IDW AsS 410 (06.2022)) and the International Standard on Assurance Engagements 3000 (Revised). Our responsibility in accordance therewith is further described in the "Group Auditor's Responsibilities for the Assurance Work on the ESEF Documents" section. Our audit firm applies the IDW Standard on Quality Management: Requirements for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)).

Responsibilities of the Executive Directors and the Supervisory Board for the ESEF Documents The executive directors of the Company are responsible for the preparation of the ESEF documents including the electronic rendering of the consolidated financial statements and the group management report in accordance with § 328 Abs. 1 Satz 4 Nr . [number] 1 HGB and for the tagging of the consolidated financial statements in accordance with § 328 Abs. 1 Satz 4 Nr. 2 HGB.

In addition, the executive directors of the Company are responsible for such internal control as they have considered necessary to enable the preparation of ESEF documents that are free from material non-compliance with the requirements of $\S 328$ Abs. 1 HGB for the electronic reporting format, whether due to fraud or error.

The supervisory board is responsible for overseeing the process for preparing the ESEF documents as part of the financial reporting process.

Group Auditor's Responsibilities for the Assurance Work on the ESEF Documents
Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material non-compliance with the requirements of $\S 328$ Abs. 1 HGB , whether due to fraud or error. We exercise professional judgment and maintain professional skepticism throughout the assurance work. We also:

• Identify and assess the risks of material non-compliance with the requirements of $\S 328$ Abs. 1 HGB, whether due to fraud or error, design and perform assurance procedures responsive to those risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our assurance opinion.
• Obtain an understanding of internal control relevant to the assurance work on the ESEF documents in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance opinion on the effectiveness of these controls.
• Evaluate the technical validity of the ESEF documents, i.e., whether the electronic file containing the ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815 in the version in force at the date of the consolidated financial statements on the technical specification for this electronic file.
• Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the audited consolidated financial statements and to the audited group management report.
• Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (IXBRL) in accordance with the requirements of Articles 4 and 6 of the Delegated Regulation (EU) 2019/815, in the version in force at the date of the consolidated financial statements, enables an appropriate and complete machine-readable XBRL copy of the XHTML rendering.

Further Information Pursuant to Article 10 of the EU Audit Regulation

We were elected as group auditor by the annual general meeting on 18 April 2024. We were engaged by the supervisory board on 19 December 2024. We have been the group auditor of the Beiersdorf Aktiengesellschaft, Hamburg, without interruption since the financial year 2024.

We declare that the audit opinions expressed in this auditor's report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).

REFERENCE TO AN OTHER MATTER- USE OF THE AUDITOR'S REPORT

Our auditor's report must always be read together with the audited consolidated financial statements and the audited group management report as well as the assured ESEF documents. The consolidated financial statements and the group management report converted to the ESEF format - including the versions to be filed in the company register - are merely electronic renderings of the audited consolidated financial statements and the audited group management report and do not take their place. In particular, the "Report on the Assurance on the Electronic Rendering of the Consolidated Financial Statements and the Group Management Report Prepared for Publication Purposes in Accordance with $\S 317$ Abs. 3a HGB" and our assurance opinion contained therein are to be used solely together with the assured ESEF documents made available in electronic form.

GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT

The German Public Auditor responsible for the engagement is Thorsten Dzulko.

Assurance Report of the Independent German Public Auditor on a Limited Assurance Engagement in Relation to the Combined NonFinancial Statement Included in the Group Management Report

To Beiersdorf Aktiengesellschaft, Hamburg

Assurance Conclusion

We have conducted a limited assurance engagement on the combined non-financial statement of Beiersdorf Aktiengesellschaft, Hamburg, (hereinafter the "Company") included in section "Combined Non-financial Statement of the Beiersdorf Group and the Beiersdorf AG" of the group management report, which is combined with the Company's management report, to comply with $\S \S$ [Articles] 289b to 289e HGB [Handelsgesetzbuch: German Commercial Code] and $\S \S 315$ b to 315c HGB including the disclosures contained in this combined non-financial statement to fulfil the requirements of Article 8 of Regulation (EU) 2020/852 (hereinafter the "Combined Non-Financial Reporting") for the financial year from 1 January to 31 December 2024.

Not subject to our assurance engagement were the external sources of documentation or expert opinions mentioned in the Combined Non-Financial Reporting, which are marked as unassured.

Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the accompanying Combined Non-Financial Reporting for the financial year from 1 January to 31 December 2024 is not prepared, in all material respects, in accordance with § 315c in conjunction with $\S \S 289$ c to 289 e HGB and the requirements of Article 8 of Regulation (EU) 2020/852 as well as with the supplementary criteria presented by the executive directors of the Company.

We do not express an assurance conclusion on the external sources of documentation or expert opinions mentioned in the Combined Non-Financial Reporting, which are marked as unassured.

Basis for the Assurance Conclusion

We conducted our limited assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board (IAASB).

The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Our responsibilities under ISAE 3000 (Revised) are further described in the "German Public Auditor's Responsibilities for the Assurance Engagement on the Combined Non-Financial Reporting" section.

We are independent of the Company in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. Our audit firm has complied with the quality management system requirements of the IDW Standard on Quality Management: Requirements for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)) issued by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany; IDW). We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusion.

Emphasis of Matter - Principles for the Preparation of the Combined Non-Financial Reporting

Without modifying our assurance conclusion, we refer to the disclosures in the Combined Non-Financial Reporting, which describe the principles for the preparation of the Combined Non-Financial Reporting. According to these, the Company has applied the European Sustainability Reporting Standards (ESRS) to the extent specified in section "General Basis for Preparation of Non-financial Statement" and „Annex A" of the Combined Non-Financial Reporting.

Responsibility of the Executive Directors and the Supervisory Board for the Combined Non-Financial Reporting

The executive directors are responsible for the preparation of the Combined Non-Financial Reporting in accordance with the relevant German legal and European regulations as well as with the supplementary criteria presented by the executive directors of the Company. They are also responsible for the design, implementation and maintenance of such internal controls that they have considered necessary to enable the preparation of a Combined Non-Financial Reporting in accordance with these regulations that is free from material misstatement, whether due to fraud (i.e., manipulation of the Combined NonFinancial Reporting) or error.

This responsibility of the executive directors includes establishing and maintaining the process performed by the Company to identify the disclosures to be included in the Combined Non-Financial Reporting (hereinafter the "materiality assessment"), selecting and applying appropriate reporting policies for preparing the Combined Non-Financial Reporting, as well as making assumptions and estimates and ascertaining forward-looking information for individual sustainability-related disclosures.

The supervisory board is responsible for overseeing the process for the preparation of the Combined Non-Financial Reporting.

German Public Auditor's Responsibilities for the Assurance Engagement on the Combined Non-Financial Reporting

Our objective is to express a limited assurance conclusion, based on the assurance engagement we have conducted, on whether any matters have come to our attention that cause us to believe that the Combined Non-Financial Reporting has not been prepared, in all material respects, in accordance with the relevant German legal and European regulations as well as with the supplementary criteria presented by the executive directors of the Company, and to issue an assurance report that includes our assurance conclusion on the Combined Non-Financial Reporting.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgment and maintain professional skepticism. We also:

• obtain an understanding of the process to prepare the Combined Non-Financial Reporting, including the materiality assessment process carried out by the Company to identify the information to be included in the Combined Non-Financial Reporting.
• identify disclosures where a material misstatement due to fraud or error is likely to arise, design and perform procedures to address these disclosures and obtain limited assurance to support the assurance conclusion. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misleading representations, or the override of internal controls. In addition, the risk of not detecting a material misstatement within value chain information from sources not under the control of the company (value chain information) is generally higher than the risk of not detecting a material misstatement of value chain information from sources under the control of the company, as both the executive directors of the Company and we, as assurance practitioners, are ordinarily subject to limitations on direct access to the sources of value chain information.
• consider the forward-looking information, including the appropriateness of the underlying assumptions. There is a substantial unavoidable risk that future events will differ materially from the forward-looking information.

Summary of the Procedures Performed by the German Public Auditor

A limited assurance engagement involves the performance of procedures to obtain evidence about the sustainability information. The nature, timing and extent of the selected procedures are subject to our professional judgement.

In conducting our limited assurance engagement, we have, amongst other things:

• evaluated the suitability of the criteria as a whole presented by the executive directors in the Combined Non-Financial Reporting.
• inquired of the executive directors and relevant employees involved in the preparation of the Combined Non-Financial Reporting about the preparation process, including the materiality assessment process carried out by the company to identify the information to be included in the Combined Non-Financial Reporting, and about the internal controls relating to this process.
• evaluated the reporting policies used by the executive directors to prepare the Combined NonFinancial Reporting.
• evaluated the reasonableness of the estimates and the related disclosures provided by the executive directors. If, in accordance with the ESRS, the executive directors estimate the value chain information to be reported for a case in which the executive directors are unable to obtain the information from the value chain despite making reasonable efforts, our assurance engagement is limited to evaluating whether the executive directors have undertaken these estimates in accordance with the ESRS and assessing the reasonableness of these estimates, but does not include identifying information in the value chain that the executive directors have been unable to obtain.
• performed analytical procedures and made inquiries in relation to selected information in the Combined Non-Financial Reporting.
• considered the presentation of the information in the Combined Non-Financial Reporting.
• considered the process for identifying taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Combined Non-Financial Reporting.

Restriction of Use

We draw attention to the fact that the assurance engagement was conducted for the Company's purposes and that the report is intended solely to inform the Company about the result of the assurance engagement. Accordingly, the report is not intended to be used by third parties for making (financial) decisions based on it. Our responsibility is solely towards the Company. We do not accept any responsibility, duty of care or liability towards third parties.

Hamburg, 21 February 2025
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft

Thorsten Dzulko

Wirtschaftsprüfer
[German public auditor]

Claudia Niendorf-Senger

Wirtschaftsprüfer
[German public auditor]

Responsibility Statement by the Executive Board

To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position, and profit or loss of the Group, and the Group Management Report, which has been combined with the Management Report for Beiersdorf Aktiengesellschaft, includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group.

Hamburg, February 7, 2025
The Executive Board

Vincent Warnery

Chairman of the Executive Board

Nicola D. Lafrentz
Member of the Executive Board

Oswald Barckhahn
Member of the Executive Board

Astrid Hermann
Member of the Executive Board

Ramon A. Mirt
Member of the Executive Board

Patrick Rasquinet
Member of the Executive Board

p. 325 Remuneration Report
p. 353 Ten-Year Overview
p. 354 Imprint
p. 355 Financial Calendar

ADDITIONAL INFORMATION

Remuneration Report

The remuneration report explains the structure and amount of the remuneration paid to current and former members of the Executive Board and the Supervisory Board of Beiersdorf AG in the financial year 2024. It was prepared in accordance with the statutory provisions of § 162 Aktiengesetz (German Stock Corporation Act, AktG) as amended by the Gesetz zur Umsetzung der zweiten Aktionärsrechterichtlinie (German Act on the Implementation of the Second Shareholders' Rights Directive, ARUG II) and also contains additional information on Executive Board and Supervisory Board remuneration for added clarity and transparency. The auditor has examined whether the remuneration report contains the information required in accordance with § 162 (1) and (2) AktG. The auditor's report is included in this remuneration report.

On April 18, 2024, the Annual General Meeting approved the remuneration report for the financial year 2023, which was prepared and audited in accordance with § 162 AktG, with a majority of approximately $91 \%$ of the votes cast (previous year: $76 \%$ ). This improved voting result is due, among other reasons, to the careful consideration given by the Executive Board and Supervisory Board following the 2023 Annual General Meeting to the comments made to the company by investors and other stakeholders with regard to the remuneration system and the remuneration report. Where it was deemed reasonable and appropriate, these were taken into account in the preparation of the 2023 remuneration report. In addition to this, suggestions and any criticism made by investors are considered on an ongoing basis, including in the preparation of this remuneration report.

Moreover, the Supervisory Board made the decision that the remuneration system would be refined with effect from the financial year 2025, and in particular, that the long-term variable remuneration would be newly set up and aligned with the "Win with Care" business strategy adopted in July 2024. The new remuneration system will be submitted to the Annual General Meeting on April 17, 2025 for approval; see the Annual General Meeting documents at www.beiersdorf.de/investor-relations/ hauptversammlung/2025 for information.

1. Remuneration of the Executive Board

The Supervisory Board is responsible for setting the remuneration of the members of the Executive Board. It addressed the structure and appropriateness of Executive Board remuneration, as well as individual remuneration questions, at its meetings on February 5, 2024, February 23, 2024, April 18, 2024, August 30, 2024, and November 29, 2024. On February 3, 2025, the Supervisory Board determined the remuneration of the Executive Board for the financial year 2024. All decisions by the Supervisory Board in relation to Executive Board remuneration were prepared by the Presiding Committee of the Supervisory Board.

Remuneration System and Process

The remuneration system for the Executive Board valid up to and including 2024 was revised in line with the AktG, as amended by ARUG II, as of January 1, 2021, and approved by the Annual General Meeting on April 1, 2021, with a majority of $87 \%$ of the votes cast. The remuneration system is published on the website at www.beiersdorf.com/investor-relations/corporate-governance/remuneration-of-executive-board-and-supervisory-board. The main elements of the remuneration system are also summarized in this remuneration report.

The remuneration system applies to all members of the Executive Board appointed from 2021 on. In accordance with the underlying legal framework, the service agreements currently in force with the

members of the Executive Board appointed prior to 2021, in particular the long-term variable compensation components, are in principle unaffected. Nevertheless, the Supervisory Board has agreed in principle with serving Executive Board members that the remuneration system shall apply to them effective January 1, 2021.

The remuneration system was refined effective January 1, 2025, in particular with respect to long-term variable remuneration. This new remuneration system will be submitted to the 2025 Annual General Meeting for approval.

Link to Strategy and Guiding Principles of the Remuneration System

The remuneration system for the Executive Board valid in 2024 made a material contribution to furthering and implementing the important business strategy of recent years, C.A.R.E.+, both in its entirety and with its individual components by creating incentives for sustained and value-oriented corporate development and taking into account the interests of the shareholders, customers, employees, business partners, environment, and society (stakeholders). The business strategy was developed into the "Win with Care" strategy in July 2024, which will be taken into account in the new remuneration system applicable from 2025.

The previous business strategy, C.A.R.E.+, was rooted in the clear ambition to grow competitively and sustainably through strategic priorities and the will to create added value for people and society in the long term. In this way, Beiersdorf wanted to expand its position in the skin care market and ensure sustained profitability.

The C.A.R.E. + strategy entailed the following five strategic priorities:

• Digital transformation: strengthen consumer proximity through new digital channels and technologies
• Skin care: gain consumers' favor with superior skin care innovations and a strong portfolio of global brands
• Growth potential: tap new growth markets and business areas and leverage global growth potential
• Increased productivity: accelerate growth through increased productivity
• Sustainability and Core Values: With the four Core Value attributes (Care, Simplicity, Courage and Trust), culture, sustainability, compliance as well as our employees' capabilities and skills, we are building on a strong foundation.

The structure of the remuneration system and the actual remuneration awarded on the basis of this system give the members of the Executive Board an incentive to pursue and achieve the goals defined in the strategy and thus work toward achieving sustainable and long-term growth of the company's enterprise value. In 2024, both the short- and long-term variable remuneration therefore included specific performance criteria geared toward the five priorities of the C.A.R.E. + strategy.

Beyond this strategic link, the Supervisory Board is guided by the following additional factors in structuring the remuneration system and determining the amount of remuneration:

Company's situation	The remuneration system is based on the company's operating, financial, and economic situation as well as its successes and outlook for the future.
Duties and performance of the Executive Board	The remuneration system takes into account the duties and performance of the Executive Board as a whole as well as of the individual members.
Pay for performance	The remuneration system defines appropriate performance indicators for determining the performance-tied variable remuneration, which accounts for most of the total remuneration, to ensure that the Executive Board's performance is appropriately rewarded, while taking due account of any failure to achieve the defined targets.
Appropriateness	The structure and amount of the Executive Board remuneration reflects customary market practice and is competitive. This is ensured by means of regular benchmarking against the relevant peer groups. In addition, the remuneration for the Executive Board is appropriately balanced in relation to the remuneration for the company's senior management and employees.
Consistency	The remuneration system for the Executive Board and senior management create comparable incentives and have predominantly uniform objectives (consistency of the remuneration system). In addition, the corporate targets for employees' variable remuneration are defined on the basis of the corporate goals defined for the remuneration of the Executive Board. This ensures consistent incentives and, hence, a uniform control effect.
Regulatory conformity	The remuneration system for the Executive Board is consistent with the German Stock Corporation Act and takes account of the recommendations and suggestions of the German Corporate Governance Code.

Procedure for Determining, Implementing, and Reviewing the Remuneration System

The Supervisory Board has drawn up and approved the remuneration system in accordance with the statutory requirements and in the light of the recommendations and suggestions of the German Corporate Governance Code (except where the company has declared a deviation from that Code). In doing so, it was advised and supported by external remuneration advisors and by its Presiding Committee, particularly on questions concerning the appropriateness and market conformity of the amount of the remuneration, and by the Personnel Committee, particularly on questions concerning the remuneration structure.

The Supervisory Board regularly reviews the remuneration system, particularly with regard to its appropriateness, including in relation to comparable companies (horizontal comparison) and within the company in relation to senior management and the workforce as a whole (vertical comparison). The review of the remuneration system is prepared by the Presiding Committee, which recommends any necessary adjustments to the remuneration system to the Supervisory Board. The Supervisory Board submits the remuneration system for approval by the Annual General Meeting in accordance with § 120a AktG in the event of any material change to the remuneration system and at least every four years. The remuneration system will next be submitted to the Annual General Meeting for approval in April 2025.

Definition of Specific Target Total Remuneration and Determination of the Amount of Remuneration

On the basis of the remuneration system, the Supervisory Board defines the specific target total remuneration for the individual members of the Executive Board comprising all fixed and variable remuneration components for the year including ancillary benefits.

The Supervisory Board defines the performance criteria for all variable compensation components for the financial year ahead at the recommendation of its Presiding Committee within the framework of the remuneration system. When defining the performance criteria, the Supervisory Board also determines the weighting of the individual performance criteria within the specific remuneration component. In addition, it ensures that the target remuneration under the variable remuneration components is

generally tied more closely to strategic objectives than to operational ones and that the amount of the target remuneration under long-term remuneration components is higher than that under the shortterm remuneration component. For the short-term variable remuneration applicable in 2024, the Supervisory Board set the performance criteria in November 2023 following submission of the multiyear planning prepared by the Executive Board. The target total remuneration for the financial year 2024 was also determined in November 2023.

After the end of the financial year (or, in the case of long-term variable remuneration, after the end of the last financial year of the assessment period), the Supervisory Board determines the specific target achievement at the recommendation of its Presiding Committee. For this purpose, achievement of the financial targets is determined in connection with the preparation and approval of the annual and consolidated financial statements. Achievement of the non-financial targets is determined after detailed consultation derived from a comparison of the target/actual achievement of individual performance criteria. The Supervisory Board sets the variable remuneration and the total remuneration for the previous financial year on the basis of the target achievement. For the 2024 short-term variable annual bonus and the long-term variable remuneration LTP 2021-2024, the term of which ended as of December 31, 2024, the Supervisory Board determined the specific target achievement at its meeting on February 3, 2025 (see also e) in the "Remuneration structure and elements" section of this remuneration report).

Appropriateness and Market Conformity of the Remuneration/Comparison With Market Environment and Employee Remuneration

In determining remuneration, the Supervisory Board pays particular attention to ensuring that the target remuneration appropriately reflects the duties (including division responsibilities) and performance of the member of the Executive Board. In addition to distinctions based on specific functions, e.g., the position of Chairman of the Executive Board and regional responsibilities, the Supervisory Board may also, at its own due discretion, take account of other criteria such as location, experience, and length of service. The Supervisory Board also ensures that the remuneration of the Executive Board appropriately reflects the company's net assets, financial position, results of operations, and prospects for the future and does not exceed the customary remuneration without reason.

In assessing appropriateness and market conformity, the Supervisory Board particularly considers the specific competitive situation (horizontal comparison). For this purpose, the Supervisory Board considers relevant peer groups, which are selected on the basis of Beiersdorf's market position (particularly country, sector, and size). The peer groups, whose composition is disclosed in the remuneration system, comprise companies listed in the German DAX and MDAX equity indexes, on the one hand, and an international sector peer group, on the other. The horizontal comparison is also intended to ensure that the Executive Board receives competitive remuneration that conforms to standard market practice.

To ensure appropriate Executive Board remuneration in conformance with standard market practice, the Supervisory Board also considers its relationship to the company's internal remuneration structure (vertical comparison). To this end, it compares the amount of the average annual target remuneration paid to senior management, comprising the first and second management group of the Consumer Business Segment in Germany below the Executive Board, with the Executive Board remuneration. Moreover, the Executive Board remuneration is compared with the amount of the average annual remuneration across all employees in the Consumer Business Segment in Germany (including senior management). The ratio thus determined is also reviewed over time.

The Supervisory Board has reviewed and confirmed the appropriateness and market conformity of the Executive Board remuneration in setting the specific target remuneration for 2024, most recently with the support of an external remuneration expert as part of the development of the remuneration system that will apply from 2025.

Remuneration Structure and Elements

a) Overview

The total remuneration payable to the members of the Executive Board is composed of fixed and variable elements. The fixed remuneration, which is not tied to performance, comprises the base remuneration plus ancillary benefits. The variable remuneration is composed of a short-term variable bonus with annual targets (Variable Bonus) and a long-term variable bonus (LTP). It may also contain a multi-annual bonus (MAB) that is tied primarily to the targets defined for the area of responsibility of that member of the Executive Board. In addition, the members of the Executive Board may be offered a reappointment bonus (which may also be tied to performance).

The serving members of the Executive Board do not receive any pension commitments from the company. Executive Board members can decide in individual cases to convert their LTP into a defined contribution benefit commitment for which a reinsurance policy can be concluded.

As a rule, the relative share of the base remuneration, on the one hand, and the short-term and longterm variable remuneration, on the other hand, break down as follows (including regular benefits but excluding any secondment-related benefits and reappointment bonuses):

Relative Shares of the Remuneration Components

In this description of the relative shares, long-term variable remuneration components (MAB and LTP) are included with an annual target value on a prorated basis, notwithstanding the fact that they are not due for payment until the end of the period. If a member of the Executive Board is granted a reappointment bonus, this is generally up to $50 \%$ of the annual target total remuneration at the beginning of the appointment period. The secondment-related benefits may equal an amount of up to $100 \%$ of the base remuneration depending on the location (see c) below for a breakdown of ancillary benefits). The relative shares accounted for by the other remuneration components are modified correspondingly in these cases.

The variable remuneration is predominantly measured over a multi-year period. In addition, the share of variable remuneration from long-term targets exceeds the share from short-term targets.

The remuneration of the individual members of the Executive Board in 2024, including the relative shares of the remuneration components granted and owed (within the meaning of $\S 162$ (1) sentence 2 no. 1 AktG ) is reported in the "Remuneration of the individual Executive Board members in 2024" section.

b) Base Remuneration

The base remuneration is a fixed annual amount paid in 12 equal installments at the end of each calendar month. If the service agreement begins or ends part way through a financial year, the base remuneration for that financial year is paid pro rata.

Together with the other remuneration components, the base remuneration forms the basis for recruiting and retaining the highly qualified members required by the Executive Board to develop and implement the business strategy. The remuneration should reflect both the duties and the performance of the individual Executive Board members and their skills and experience.

c) Ancillary Benefits

Each Executive Board member receives customary non-cash remuneration components and other ancillary benefits. The regular benefits may include:

• Provision of a company car, which may also be used for private purposes. In accordance with the Group's "Green Car Policy," the emissions produced by the company car must not exceed a certain carbon threshold. In lieu of a company car, a monthly "cash for car" allowance may also be granted
• Customary insurance cover, including contributions to health and accident insurance, as well as to any invalidity and surviving dependents policies
• Reimbursement of job-related relocation costs
• Allowance for school expenses

If, at the request of the company, a member of the Executive Board relocates their place of work or residence or does not maintain them at the headquarters of the company, other benefits may be granted. Such secondment-related benefits may particularly include:

• Foreign-secondment allowance to cover the cost of accommodation at the place of residence
• Cost of flights for the member of the Executive Board and their family to and from the place of residence
• Further health insurance expenses

d) Reappointment

In individual cases, the Supervisory Board may agree on a bonus payable in the event of reappointment. As a rule, this reappointment bonus is due upon the reappointment taking effect ("reappointment bonus").

The Supervisory Board may at its own due discretion determine the structure of the reappointment bonus, in particular as a performance-related bonus, to which the performance criteria defined for the Variable Bonus (see e) below) or the MAB (see f)) apply.

e) Variable Bonus

The members of the Executive Board receive for each financial year a Variable Bonus tied to the performance of the Consumer Business Segment, which is paid out after a one-year measurement period following the Annual General Meeting of the year following the financial year in question.

The Variable Bonus is composed of joint and individual performance criteria that are tied to the company's financial and non-financial performance as well as its strategic and operational development. The joint targets are given a weighting of 70-90\% and the individual targets a weighting of $10-30 \%$.

Variable Bonus

One fiscal year
Target amount in € Performance of the Consumer Business Segment Amount paid out in €

Joint targets	$70-90 \%$
Individual targets	$10-30 \%$

The Supervisory Board determines the selection and weighting of the individual performance criteria at the recommendation of the Presiding Committee for the new financial year. With respect to the total Variable Bonus, the individual performance criteria for the joint targets generally have a weighting of $10-40 \%$ and the individual targets a weighting of $5-20 \%$.

In accordance with the remuneration system, the following performance criteria may be used for the Variable Bonus (at the discretion of the Supervisory Board):

The performance criteria underlying the Variable Bonus create an incentive for the Executive Board to increase the company's enterprise value on a sustained and long-term basis in line with the business strategy. In particular, sales are to be increased by opening up new growth markets and areas of business, while profitability is to be improved by means of simultaneous investments in innovations. Market shares are to be widened and market positions strengthened by reinforcing the global brands and improving consumer proximity as well as through new digital channels and technologies. The performance criteria defined in the sustainability agenda and those related to diversity also reflect -

in line with the Core Values underlying the strategy - the responsibility that the Executive Board has for creating long-term value for people, the environment, and society.

As a general rule, the targets defined for the performance criteria are based on the applicable annual planning. Similarly, measurable criteria are defined for the non-financial targets as far as possible. Depending on the individual case, these may be derived from the annual planning, strategic projects, or other activities. The achievement of non-financial targets is determined by comparing actual with target achievement.

On this basis, the Supervisory Board defines percentage target-achievement levels for the components of the Variable Bonus after the end of the financial year. The following target-achievement levels apply:

• The applicable components are omitted if target achievement is less than $70 \%$.
• $50 \%$ of the target amount defined for the component in question is granted for target achievement of $70 \%$.
• $80 \%$ of the target amount defined for the component in question is granted for target achievement of $80 \%$.
• $200 \%$ of the target amount defined for the component in question is granted for target achievement of $200 \%$. A cap is applied to target achievement of above $200 \%$.
• The intermediate values are interpolated on a linear basis.

Target Achievement Levels - Variable Bonus

Subsequently, the total target achievement for and the amount of the Variable Bonus is calculated on the basis of the target achievement for the individual components.

For the 2024 Variable Bonus, the Supervisory Board set the joint and individual performance targets shown in the table below at the end of 2023 and, on February 3, 2025, determined the level of target achievement (also shown below) and resulting payment amount. In view of the end of the measurement period on December 31, 2024, the 2024 Variable Bonus was "granted" to the Executive Board members in the financial year 2024, even though it will not be paid out until after the 2025 Annual General Meeting.

Variable Bonus 2024

Joint Targets

Performance criteria	Target level (100\% target achievement)	Actuals 2024	Weighting	Target achievement
Net sales growth Consumer	6\% net sales growth	7.1\%	$20 \%$	$143 \%$
EBIT increase Consumer	Increase of earnings before interest and tax (EBIT) without special factors as \% of sales to 13.1\%	$14.2 \%$	$10 \%$	$180 \%$
Skin Care in-market performance	Outperforming relevant skin care market: increase in sales above market in 2024 (index of 101.3)	Index 100	$30 \%$	$50 \%$
NIVEA and Derma innovation	Share of target net sales of most important innovation projects of 14.5\% in 2024	$17.5 \%$	$5 \%$	$180 \%$
Digital transformation	Disproportionately high growth of e-commerce: increase in e-commerce net sales by 18\% (vs. 2023)	$20.8 \%$	$5 \%$	$150 \%$
Target achievement for joint targets				$111.6 \%$

${ }^{\text {D }}$ Due to a stronger weighting of the sales and market growth target with the respective results of the Luxury business, the achievement of the joint targets for Patrick Rasquinet totals 97.9\%.

Individual Targets

	Performance criteria	Weighting	Target achievement
Vincent Wamery	CEO: Development of Skin Care business; drive digitalization; lead sustainability; future fit organization	$30 \%$	$135 \%$
Oswald Barckhahn	Europe/North America: Cosmetics and Derma integration; digital operating model; development of Coppertone business; people and culture (including gender diversity)	$30 \%$	$100.8 \%$
Astrid Hermann	Finance: Digitalization and process acceleration; elevate venture capital; continue transformation of finance organization	$30 \%$	$125 \%$
Nicola D. Lafrentz	HR: Talent development with focus on leadership excellence; continued focus on diversity and inclusion (including disability inclusion); further digitalization of HR	$30 \%$	$125 \%$
Grita Loebsack	NIVEA: Face Care strategic development; digital acceleration; leadership development	$30 \%$	$112.5 \%$
Ramon A. Mirt	Emerging Markets: Cosmetics and Derma integration; new markets; development of organization (including diversity)	$30 \%$	$143 \%$
Patrick Rasquinet	Luxury: Development of La Prairie and Chantecaille business; leadership development	$30 \%$	$50 \%$

Target Remuneration and Achievement

	Target remuneration (in € thousand)	Overall target achievement	Bonus amount (in € thousand)
Vincent Wamery	900	$118.6 \%$	1,067
Oswald Barckhahn	200	$108.4 \%$	217
Astrid Hermann	200	$115.6 \%$	231
Nicola D. Lafrentz	200	$115.6 \%$	231
Grita Loebsack	200	$111.9 \%$	224
Ramon A. Mirt	200	$121.0 \%$	242
Patrick Rasquinet	200	$83.5 \%$	167

f) Multi-Annual Bonus (MAB)

Under the remuneration system applicable in 2024, the long-term variable remuneration for the members of the Executive Board may in individual cases additionally include a multi-annual bonus ("MAB"). The MAB particularly has the strategic purpose of strengthening Beiersdorf in regional growth markets or specific business areas.

The performance criteria for the MAB are derived from the targets defined for the areas of responsibility assigned to the members of the Executive Board. In particular, target achievement may be measured on the basis of growth according to annual or multi-annual corporate planning and by reference to the growth in market shares in the applicable region or business area during the appointment of the relevant member of the Executive Board or over a period of at least three years.

Multi-Annual Bonus

Of the serving Executive Board members, an MAB was allocated only to Ramon A. Mirt in 2024 (target amount: $€ 500$ thousand p.a.) on a prorated basis for his activities in Group companies until June 30, 2024, the date of his reappointment. The MAB is calculated based on the average annual growth rate in accordance with corporate planning in the regions for which Ramon A. Mirt is responsible and on the increase in market shares, both throughout a measurement period from January 1, 2019, to December 31, 2024. Following the end of this period, the Supervisory Board determined the level of target achievement and resulting payment amount.

MAB

Allocation	Target	Target(= 100\% target achievement)	Actuals	Target achievement(in \%)	Overall target achievement(in \%)	Target amount (in€ thousand)	Bonus amount(in €thousand)
Ramon A. Mirt	Sales	Average annual increase in sales of $7.2 \%$ in the "Emerging Markets" region during measurement period from 2019 until 2024 (adjusted for special factors)	$11 \%$ p.a.	$\begin{gathered} 120 \% \ \text { (Cap) } \end{gathered}$	$\begin{gathered} 120 \% \ \text { (Cap) } \end{gathered}$	2,667	3,200
Mar. 2019 to Jun. 2024	Value above market (as multiplier)	Outperforming relevant skin care market: increase in sales above market (average index of 100.5 p.a.)	Index 101.6	$125 \%$

g) Long-Term Bonus (LTP)
LTP 2021-2024

Executive Board members receive a multi-annual bonus measured on the basis of the targets for the achievement of strategic criteria after the expiry of a four-year bonus period from 2021 through 2024 (LTP 2021-2024). For Executive Board members appointed during the current LTP 2021-2024 bonus period, a prorated bonus period up to the end of 2024 applies.

Long-Term Bonus

The LTP 2021-2024 makes a material contribution to advancing the company's C.A.R.E.+ strategy relevant in that period by giving the Executive Board an incentive for securing sustainable and profitable growth particularly by strengthening the focus on skin care, sustainability, digitalization, opening up new growth markets and business areas, innovations, and human resource development. Joint targets for all members of the Executive Board apply to the LTP 2021-2024 and are tied to the company's strategic development. They can be weighted individually depending on the duties involved. For this purpose, the Supervisory Board defined measurable non-financial or financial criteria, which are primarily derived from the implementation of the C.A.R.E.+ strategy and the multi-annual planning required to be submitted to the Supervisory Board for approval.

After the expiry of the bonus period, the Supervisory Board defines the percentage target achievement levels between 0 and 200\% for the strategic targets of the LTP 2021-2024. At or above an overall target achievement of $90 \%$, target achievement of the aforementioned strategic targets is weighted with the target achievement for the performance metrics (if target achievement $\geq 100 \%$ ) from the multi-year planning adopted in 2021. Nominal sales growth exceeding the market (with an EBIT gatekeeper of $+/-10 \%$ deviation from plan) accounts for half of these performance criteria. Outperformance of the relevant skin care market (based on market shares and measured as net value added, excluding market growth and portfolio mix effects) in the Consumer categories accounts for the other half.

On the recommendation of its Presiding Committee, the Supervisory Board set the performance criteria and weightings in the table below for the LTP 2021-2024 at the beginning of the bonus period. Following expiry of the bonus period at the end of 2024, the Supervisory Board determined the level of target achievement (also shown below) and resulting bonus payment for the LTP 2021-2024 at the recommendation of its Presiding Committee on February 3, 2025. This amount will be due for payment following the 2025 Annual General Meeting and was therefore "granted and owed" to the serving Executive Board members in 2024 within the meaning of $\S 162(1)$ AktG.

LTP 2021-2024

Strategic targets	Target level (100\% target achievement)	Actuals	Weighting		Target achievement
Digital transformation	Increase in e-commerce sales by 95\% (vs. 2021) up to 2024	$+85 \%$	$10 \%$	20\%	$72 \%$	$136 \%$
	Successful go-live of S4/HANA	S4/HANA go-live well ahead of plan	$5 \%$		200\%
	Increase in digital 1-on-1 consumer connections by $28 \%$	$+117 \%$	$5 \%$		200\%
Win with Skin Care	Implementation of a new innovation management process	Innovation management process implemented above plan	$10 \%$	$20 \%$	$120 \%$	$158 \%$
	Increase in innovation share to 10\% (of net sales)	$18 \%$	$10 \%$		$195 \%$
Opening up growth markets and areas of business	Implementation of 9 strategic initiatives to accelerate sales growth in the USA, China and the Emerging Markets through enlarged presence	8/9 strategic initiatives fully implemented; sales targets in particular in China behind plan		$20 \%$		$53 \%$
Sustainability	Reduction of global scope 1, 2 and 3 emissions by 20\% (vs. 2018)	$-23 \%$	$5 \%$	20\%	$100 \%$	$99 \%$
	Increase in share of recycled materials in plastic packaging by 20\% by 2024	$+22 \%$	$5 \%$		$100 \%$
	Transformation of the "Big4" NIVEA ranges focusing on sustainable formulations and packaging.	3 ranges successfully transformed (100\%); 1 range almost completely transformed ( $90 \%$ )	$10 \%$		$97.5 \%$
Diversity and employee development	Increase in proportion of women at management levels MG 1-4 to 45\%	$51 \%$	$10 \%$	$20 \%$	$100 \%$	$100 \%$
	Succession planning for MG 1-4, including increase of internal and international promotions to $75 \%$	$77 \%$	$5 \%$		$100 \%$
	Diversity \& Inclusion targets	Achieved as planned	$5 \%$		$100 \%$
Target achievement strategic targets						108.9\%
Performance metrics (applicable as multiplier if strategic targets $\geq 90 \%$ )
Value above market	Outperformance of relevant skincare market (market share, measured as net value creation, adjusted for portfolio mix effects): Index of 101.0	Index 100,4		$50 \%$		$97 \%$
Net Sales	Net sales growth (nominal and adjusted for inflation) from 2021 to 2024 (gatekeeper: EBIT target p.a. of the annual business plan +/- 10\%) in the amount of 4\% p.a.	$5.5 \%$		$50 \%$		$150 \%$
Target achievement performance metrics						123.6\%
Overall target achievement						$148.9 \%{ }^{1}$

[^0]
[^0]: * The overall target achievement contains an increase that the Supervisory Board has set at its own due discretion in accordance with the remuneration system.

Target Remuneration and Achievement

	Target remuneration LTP 2021-2024 (in € thousand)		Overall target achievement	Bonus amount (in € thousands)
	p.a.	entire term
Vincent Warnery	2,000	7,333	$148.9 \%$	10,920
Oswald Barckhahn	1,550	4,960	$148.9 \%$	7,386
Astrid Hermann	753	3,010	$148.9 \%$	4,585
Nicola D. Lafrentz	450	1,200	$148.9 \%$	1,852
Grita Loebsack	1,300	3,900	$148.9 \%$	5,807
Ramon A. Mirt	713	2,850	$148.9 \%$	4,244
Patrick Rasquinet	700	2,450	$148.9 \%$	3,648

LTP Enterprise Value Component under the old remuneration system
As per their contracts under the remuneration system in place before 2021, the serving Executive Board members appointed prior to 2021 received a share in the increase in enterprise value for the Consumer Business Segment in the form of a multi-annual bonus (LTP Enterprise Value Component), which was based on a mathematical formula drawn from the annual financial statements at the beginning and end of their terms of office, provided it had not already been settled. The measurement period for the LTP Enterprise Value Component continued for one Executive Board member only in 2024, Ramon A. Mirt. He was offered this for the period 2019 and 2020, prior to introduction of the LTP 2021-2024.

Under the LTP Enterprise Value Component, Executive Board members were allocated a notional share of the enterprise value (Base Virtual Units, BVU) at the start of their period of appointment or reappointment. The Executive Board member will be paid their share of the percentage increase in the LTP Enterprise Value Component once their period of appointment or reappointment has ended and following, where applicable, an additional vesting period ("bonus period").

The increase in enterprise value corresponds to the percentage share of the Executive Board member's allocated Enterprise Value Component that will be paid to them. The increase in enterprise value is calculated from the increase in sales from the beginning to the end of the bonus period, unless EBIT deviates by more than $10 \%$ from plan. As with the Variable Bonus, sales are adjusted for special factors. If applicable, EBIT is adjusted for, among other things, any deviations from the plan for marketing expenses as well as expenses for research and development compared with the start of the bonus period. As a rule, the LTP Enterprise Value Component is limited to a maximum amount ( $200 \%$ cap, corresponding to around $10 \%$ p.a.).

In 2024, the measurement period of Ramon A. Mirt's LTP Enterprise Value Component expired. The table below shows how this LTP Enterprise Value Component and the associated bonus were determined by the Supervisory Board.

LTP Enterprise Value Component

Allocation	Target (= 100\% target achievement)	Target remuneration over entire term (in € thousand)	Actual (adjusted for special factors)	Target achieve- ment	Bonus amount (in € thousands)
Ramon A. Mirt
Mar. 2019 to Dec. 2020	Average annual increase in sales of 5\% p.a. during measurement period from 2019 to 2024	Virtual Units: 1,100	Sales increase: 5\% p.a.	$100 \%$	1,100

Capping of the variable remuneration and maximum remuneration
The amount of all variable remuneration elements is capped at 200\% of the applicable individual target amount. The amount of the maximum total remuneration is determined on the basis of this relative cap taking into account all fixed and other remuneration components that may be granted to a member of the Executive Board depending on the individual case.

The maximum remuneration is $€ 9$ million per year for the Chairman of the Executive Board and $€ 6$ million per year for each ordinary member of the Executive Board. This maximum remuneration contains the amounts of the long-term variable remuneration (MAB and LTP) with an annual maximum value (200\%) on a prorated basis, notwithstanding the fact that they are not due for payment until the end of the period. In principle, it is not possible to report on adherence to maximum remuneration within the meaning of $\S 162$ (1) sentence 2 no. 7 AktG until after the long-term variable remuneration has been paid out. Therefore, the remuneration granted and owed in 2024 to the individual Executive Board members upon calculation of the LTP 2021-2024 at the end of the reporting year is compared with the maximum remuneration (see tables in the following section "Remuneration of the individual Executive Board members in 2024").

Adjustments as well as retention and clawback
The Supervisory Board has the option to raise or lower at its own due discretion the variable remuneration by up to $20 \%$, for example to appropriately take account of exceptional circumstances.

Under the applicable remuneration system, variable remuneration components that have already been determined or paid may be retained or claimed back by the Supervisory Board if the basis for calculating the original target achievement, particularly the applicable consolidated financial statements, subsequently proves to be materially incorrect due to new facts or evidence ("clawback"). However, this possibility is barred no later than three years after payment. This does not prejudice any other remedies that the company may have to recover damages from the member of the Executive Board, particularly under § 93 (2) AktG. The Supervisory Board did not make use of this possibility in 2024.

Rules in relation to termination of Executive Board members' duties
In the event of the premature termination of the office or activities of a member of the Executive Board for reasons beyond that member's control, the Executive Board service agreements provide for a cap on the termination benefits or other payments of twice the value of the base remuneration and twice the value of the annual Variable Bonus or a cap equaling the total target remuneration for the remaining period of the service agreement.

If the contract of a member of the Executive Board is terminated, the disbursement of any remaining variable remuneration components attributable to the period up until the termination of the contract is based on the originally agreed targets and comparison parameters as well as the due dates or holding periods stipulated in the contract.

Upon the premature termination of the Executive Board member's duties at the company's request, except in the case of termination for good cause for reasons within the member's control, the Variable Bonus (depending on entitlement) and the long-term variable remuneration are granted on a prorated basis. If the member of the Executive Board resigns at their own instigation or for good cause for reasons within the respective member's control, all claims under the long-term variable remuneration will lapse. Claims under the short-term Variable Bonus for the year of resignation will also lapse unless higher target achievement can be clearly demonstrated.

There are no commitments covering the premature termination of the contract of a member of the Executive Board due to a change of control.

For the duration of the post-contractual noncompete agreement of regularly 24 months, the relevant members of the Executive Board are entitled to claim compensation equaling half the most recently agreed annual base remuneration and half their short-term Variable Bonus (subject to the offsetting of any severance payment against the noncompete compensation). The company may waive enforcement of the post-contractual noncompete agreement at any time, however no later than six months before the termination of the contract and, in the event of the contract's premature termination, also waive this six-month period. In this respect, no compensation may be claimed.

No members stepped down from the Executive Board in 2024.

Remuneration of the Individual Executive Board Members in 2024

The tables below show the individual remuneration of the serving members of the Executive Board in 2024.

They show the targets along with the achievable minimum and maximum figures, which correspond to "benefits granted" ("gewährte Zuwendungen") within the meaning of the German Corporate Governance Code in the version dated February 7, 2017 ("2017 Code"). They also show the prorated target remuneration (p.a.) for the annual allotments of long-term variable remuneration (MAB and LTP), regardless of the respective term or measurement period. As part of setting the target remuneration for the financial year 2024, the Supervisory Board resolved in November 2023 to increase the base remuneration for each member of the Executive Board by $€ 200$ thousand and at the same time to reduce the target amount of the Variable Bonus by $€ 100$ thousand; this is intended to reduce any incentives to take short-term decisions and at the same time strengthen incentives for long-term and sustainable enterprise value development. This adjustment to the remuneration is appropriate overall, also taking into account that the base remuneration has not been increased for over 10 years.

The tables also show the remuneration granted and owed in the financial year within the meaning of $\S$ 162 (1) sentence 1 AktG. Remuneration is reported as having been "granted" ("gewährt") in the financial year if the (one-year or multi-year) activities on which it is based have been fully performed as of the end of that financial year, meaning that the remuneration has been earned, even if it is not received (i.e., paid out) until the following financial year. Remuneration "owed" ("geschuldet") is remuneration that is due but has not (yet) been received. Disclosing remuneration earned in the respective financial year ensures clearer, more transparent reporting and comparability of performance and remuneration during the reporting period. In particular, the Variable Bonus earned in a financial year can be compared against the results of operations for that financial year.

On this basis, remuneration granted and owed in the table below includes, in addition to base remuneration and ancillary benefits for financial year 2024, the 2024 Variable Bonus, for which the measurement period ended on December 31, 2024, and which will be paid out after the 2025 Annual General Meeting. The measurement period for the LTP 2021-2024 also ended on December 31, 2024, as did the measurement period for the LTP Enterprise Value Component and the MAB, as applicable to the individual members to whom these were offered. The resulting remuneration was thus earned and due for payment after the 2025 Annual General Meeting. It is therefore also recognized as granted and owed in 2024. This corresponds to "benefits received" ("Zufluss") within the meaning of the 2017 Code.

The table below also shows the relative shares of fixed and variable remuneration. These shares also relate to the remuneration granted and owed in the relevant financial year within the meaning of $\S 162$ (1) sentence 1 AktG. Therefore, they are not comparable with the relative shares in the description of the remuneration system in accordance with § 87a (1) no. 3 AktG, which refer to the respective targets or, in the case of long-term variable remuneration, to the annual target values on a prorated basis (see "Remuneration structure and elements" above).

The tables also compare the maximum remuneration set by the remuneration system for the Executive Board members with the remuneration granted and owed in the reporting year. In accordance with § 162 (1) sentence 2 no. 7 AktG, it is explained that the maximum remuneration was adhered to for each member in 2024; this also applies to the long-term variable remuneration granted and owed in 2024. It should be noted that the maximum remuneration indicated in the remuneration system contains the long-term variable remuneration LTP 2021-2024 on a prorated basis only with an annual maximum value. Upon payment of this remuneration component, the granted and owed remuneration must therefore be compared with the total of the annual maximum values of the LTP 2021-2024 throughout its term for the purpose of verifying adherence to the maximum remuneration. This is indicated accordingly in the tables below.

Remuneration Granted and Owed to Serving Executive Board Members in Accordance with § 162 (1) AktG (in € thousand)

Vincent Warnery

Chairman of the Executive Board (since May 1, 2021)
Date joined: February 15, 2017

	Target remuneration		Min./max.- remuneration		Granted and owed remuneration in accordance with § 162 (1) AktG
	2023	2024	Min. 2024	Max. 2025	2023	Share	2024	Share
Base remuneration	1,000	1,200	1,200	1,200	1,000	$39.8 \%$	1,200	$9.1 \%$
Ancillary benefits and other remuneration	5	5	5	5	5	$0.2 \%$	5	$0.0 \%$
Total fixed remuneration	1,005	1,205	1,205	1,205	1,005	$40.0 \%$	1,205	$9.1 \%$
Variable Bonus	1,000	900	-	1,800	1,507	$60.0 \%$	1,067	$8.1 \%$
Multi-year variable remuneration
LTP 2021-2024 (term 5/2021-12/2024)	2,000	2,000	-	4,000	-	-\%	10,920	$82.8 \%$
Total variable remuneration	3,000	2,900	-	5,800	1,507	$60.0 \%$	11,987	$90.9 \%$
Total remuneration	4,005	4,105	1,205	7,005	2,512	$100.0 \%$	13,192	$100.0 \%$
Maximum remuneration (remuneration system)						per year	9,000
					for LTP (entire term)		14,667

Oswald Barckhahn

Member of the Executive Board
Date joined: October 15, 2021

	Target remuneration		Min./max. remuneration		Granted and owed remuneration in accordance with § 162 (1) AktG
	2023	2024	Min. 2024	Max. 2024	2023	Share	2024	Share
Base remuneration	500	700	700	700	500	$46.1 \%$	700	$7.0 \%$
Ancillary benefits and other remuneration ${ }^{2}$	163	1,663	1,663	1,663	163	$15.0 \%$	1,663	$16.7 \%$
Total fixed remuneration	663	2,363	2,363	2,363	663	61.1\%	2,363	23.7\%
Variable Bonus	300	200	-	400	422	$38.9 \%$	217	$2.2 \%$
Multi-year variable remuneration
LTP 2021-2024 (term 10/2021-12/2024)	1,550	1,550	-	3,050	-	-\%	7,386	$74.1 \%$
Total variable remuneration	1,850	1,750	-	3,450	422	38.9\%	7,603	76.3\%
Total remuneration	2,513	4,113	2,363	5,813	1,085	100.0\%	9,966	100.0\%
Maximum remuneration (remuneration system)						per year	6,000
						for LTP (entire term)	9,760

This includes a reappointment bonus in the amount of $€ 1,500$ thousand awarded to Oswald Barckhahn in 2024 for his reappointment as of January 1, 2025.

Astrid Hermann

Member of the Executive Board/CFO
Date joined: January 1, 2021

	Target remuneration		Min./max. remuneration		Granted and owed remuneration in accordance with § 162 (1) AktG
	2023	2024	Min. 2024	Max. 2024	2023	Share	2024	Share
Base remuneration	500	700	700	700	500	$52.2 \%$	700	$12.7 \%$
Ancillary benefits and other remuneration	10	5	5	5	10	$1.0 \%$	5	$0.1 \%$
Total fixed remuneration	510	705	705	705	510	53.2\%	705	12.8\%
Variable Bonus	300	200	-	400	448	$46.8 \%$	231	$4.2 \%$
Multi-year variable remuneration
LTP 2021-2024 (term 1/2021-12/2024)	1,083	1,083	-	2,090	-	-\%	4,585	83.0\%
Total variable remuneration	1,383	1,283	-	2,490	448	46.8\%	4,816	87.2\%
Total remuneration	1,893	1,988	705	3,195	958	100.0\%	5,521	100.0\%
Maximum remuneration (remuneration system)						per year	6,000
						for LTP (entire term)	5,846

Nicola D. Lafrentz

Member of the Executive Board/Labor Director
Date joined: May 1, 2022

	Target remuneration		Min./max.- remuneration		Granted and owed remuneration in accordance with § 162 (1) AktG
	2023	2024	Min. 2023	Max. 2024	2023	Share	2024	Share
Base remuneration	500	700	700	700	500	$52.9 \%$	700	$25.0 \%$
Ancillary benefits and other remuneration	14	14	14	14	14	$1.5 \%$	14	$0.5 \%$
Total fixed remuneration	514	714	714	714	514	$54.4 \%$	714	$25.5 \%$
Variable Bonus	300	200	-	400	431	$45.6 \%$	231	$8.3 \%$
Multi-year variable remuneration
LTP 2021-2024 (term 05/2022-12/2024)	455	455	-	860	-	$-\%$	1,852	$66.2 \%$
Total variable remuneration	755	655	-	1,260	431	$45.6 \%$	2,083	$74.5 \%$
Total remuneration	1,269	1,369	714	1,974	945	$100.0 \%$	2,797	$100.0 \%$
Maximum remuneration (remuneration system)	per year
					for LTP (entire term)		2,292

Grita Loebsack

Member of the Executive Board
Date joined: January 1, 2022

	Target remuneration		Min./max.- remuneration		Granted and owed remuneration in accordance with § 162 (1) AktG
	2023	2024	Min. 2024	Max. 2024	2023	Share	2024	Share
Base remuneration	500	700	700	700	500	$31.9 \%$	700	$9.7 \%$
Ancillary benefits and other remuneration ${ }^{3}$	645	505	505	505	645	$41.2 \%$	505	$7.0 \%$
Total fixed remuneration	1,145	1,205	1,205	1,205	1,145	$73.1 \%$	1,205	$16.7 \%$
Variable Bonus	300	200	-	400	422	$26.9 \%$	224	$3.1 \%$
Multi-year variable remuneration
LTP 2021-2024 (term 1/2022-12/2024)	1,300	1,300	-	2,600	-	$-\%$	5,807	80.3\%
Total variable remuneration	1,600	1,500	-	3,000	422	$26.9 \%$	6,031	$83.3 \%$
Total remuneration	2,745	2,705	1,205	4,205	1,567	$100.0 \%$	7,236	$100.0 \%$
Maximum remuneration (remuneration system)						per year	6,000
						for LTP (entire term)	7,800

[^0]
[^0]: This includes secondment-related benefits for away-from-home activities as well as compensation payments for particular expenses resulting from the move to Beiersdorf.

Ramon A. Mirt

Member of the Executive Board
Date joined: March 1, 2019

	Target remuneration		Min./max.- remuneration		Granted and owed remuneration in accordance with § 162 (1) AktG
	2023	2024	Min. 2024	Max. 2024	2023	Share	2024	Share
Base remuneration	500	700	700	700	500	$16.2 \%$	700	$10.6 \%$
Ancillary benefits and other remuneration	1,013	557	557	557	1,013	$32.8 \%$	$557^{1}$	$8.4 \%$
Total fixed remuneration	1,513	1,257	1,257	1,257	1,513	$48.9 \%$	1,257	$19.1 \%$
Variable Bonus	300	200	-	400	429	$13.9 \%$	242	$3.7 \%$
Multi-year variable remuneration
$\begin{aligned} & \text { MAB } \ & \text { (term 3/2019-12/2024) } \end{aligned}$	500	250	-	300	800	$25.9 \%$	$850^{4}$	$12.9 \%$
LTP 2021-2024 (term 1/2021-12/2024)	600	1,050	-	2,100	-	-\%	4,244	$64.4 \%$
LTP - Enterprise Value (term 3/2019-12/2024)	-	-	-	-	350	$11.3 \%$	- $^{2}$	$0.0 \%$
Total variable remuneration	1,400	1,500	-	2,800	1,579	$51.1 \%$	5,336	$80.9 \%$
Total remuneration ${ }^{4}$	2,913	2,757	1,257	4,057	3,092	$100.0 \%$	6,593	$100.0 \%$
Maximum remuneration (remuneration system)						per year	6,000
						for LTP (entire term)	5,700

${ }^{1}$ The reappointment bonus offered to Ramon A. Mirt in 2022 which was linked to the MAB performance criteria was determined as of the end of 2024. The bonus resulting from this in the amount of $€ 1,500$ thousand was offset in full against the advance payments made and reported in the preceding years.
${ }^{2}$ The overall bonus resulting from the MAB determined as of the end of 2024 in the amount of $€ 3,200$ thousand was offset against the advance payment made and reported in the preceding years. The ancillary benefits include secondment-related benefits for activities in Group companies.
${ }^{3}$ The bonus resulting from the LTP Enterprise Value Component determined as of the end of 2024 in the amount of $€ 1.100$ thousand was offset in full against the advance payments made and reported in the preceding years.
${ }^{4}$ Of these totals, remuneration of $€ 2,265$ thousand/target value, $€ 765$ thousand/min. p.a., and $€ 3,565$ thousand/max. p.a. was offered and $€ 6,101$ thousand granted in 2024 for activities in Group companies.

Patrick Rasquinet

Member of the Executive Board
Date joined: July 1, 2021

	Target remuneration and		Min./max.- remuneration		Granted and owed remuneration in accordance with § 162 (1) AktG
	2023	2024	Min. 2024	Max. 2024	2023	Share	2024	Share
Base remuneration	500	700	700	700	500	$48.7 \%$	700	$14.6 \%$
Ancillary benefits and other remuneration ${ }^{1}$	174	287	287	287	174	$17.0 \%$	287	$6.0 \%$
Total fixed remuneration	674	987	987	987	674	$65.7 \%$	987	$20.6 \%$
Variable Bonus	300	200	-	400	352	$34.3 \%$	167	$3.5 \%$
Multi-year variable remuneration
LTP 2021-2024 (term 7/2021-12/2024)	700	700	-	1,400	-	-\%	3,648	$76.0 \%$
Total variable remuneration	1,000	900	-	1,800	352	$34.3 \%$	3,815	$79.4 \%$
Total remuneration ${ }^{2}$	1,674	1,887	987	2,787	1,026	$100.0 \%$	4,802	$100.0 \%$
Maximum remuneration (remuneration system)	per year						6,000
					for LTP (entire term)		4,900

[^0]
[^0]: ${ }^{2}$ This includes secondment-related benefits for activities in Group companies.
${ }^{3}$ Of these totals, remuneration of $€ 1,180$ thousand/target value, $€ 655$ thousand/min. p.a., and $€ 1,705$ thousand/max. p.a. was offered and $€ 2,611$ thousand granted in 2024 for activities in Group companies.

For 2024, the remuneration granted and owed pursuant to $\S 162$ (1) AktG to all serving Executive Board members in the reporting year amounted to $€ 50,107$ thousand (previous year: $€ 11,185$ thousand). Of this total, fixed remuneration accounted for $€ 5,400$ thousand (previous year: $€ 4,000$ thousand), ancillary benefits for $€ 3,036$ thousand (previous year: $€ 2,024$ thousand), the short-term Variable Bonus for $€ 2,379$ thousand (previous year: $€ 4,011$ thousand), and the MAB and LTP for $€ 39,292$ thousand (previous year: $€ 1,150$ thousand). The ratio of fixed to variable remuneration is therefore $16.8 \%$ to $83.2 \%$ (previous year: $53.9 \%$ to $46.1 \%$ ).

In the interest of consistent reporting, the table below goes beyond the statutory requirements of $\S 162$ (1) sentence 1 AktG to show the total remuneration offered for the financial year 2024, including the annual allotments of long-term variable remuneration from the LTP in the form of changes in the provisions, regardless of whether these were granted and owed in the reporting year to the serving members of the Executive Board. This corresponds to recognition as expenses in accordance with the IFRSs in individualized form. Moreover, long-term variable remuneration components that are already to be reported as remuneration granted and owed in accordance with $\S 162$ (1) AktG are not recorded in this amount if they were already reported on a prorated basis in the preceding years during their respective measurement period. Lastly, the total amount set aside for the LTP since it was allotted is shown.

Total Expenses p.a. for Executive Board Remuneration
(in $€$ thousand)

	Base remuneration		Ancillary benefits and other remuneration		Variable Bonus		Changes in provisions for the LTP			Total remuneration in accordance with IFRS ${ }^{3}$		Total amount set aside for the LTP
	2023	2024	2023	2024	2023	2024	2023	2024	$\mathbf{2 0 2 3}$	$\mathbf{2 0 2 4}$	2023	2024
Vincent Warnery	1,000	1,200	5	5	1,507	1,067	3,000	3,000	$\mathbf{5 , 5 1 2}$	$\mathbf{5 , 2 7 2}$	9,000	12,000
Oswald Barckhahn	500	700	163	$1,663^{2}$	422	217	2,312	2,364	$\mathbf{3 , 3 9 7}$	$\mathbf{4 , 9 4 4}$	5,077	7,440
Astrid Hermann	500	700	10	5	448	231	1,579	1,776	$\mathbf{2 , 5 3 7}$	$\mathbf{2 , 7 1 2}$	2,844	4,620
Nicola D. Lafrentz	500	700	14	14	431	231	621	779	$\mathbf{1 , 5 6 6}$	$\mathbf{1 , 7 2 4}$	1,088	1,867
Grita Loebsack	500	700	645	505	422	224	1,950	1,950	$\mathbf{3 , 5 1 7}$	$\mathbf{3 , 3 7 9}$	3,900	5,850
Ramon A. Mirt	500	700	1,513	$857^{2}$	429	242	900	1,575	$\mathbf{3 , 3 4 2}$	$\mathbf{3 , 3 7 4}^{4}$	2,700	4,275
Patrick Rasquinet	500	700	174	287	352	167	1,050	1,050	$\mathbf{2 , 0 7 6}$	$\mathbf{2 , 2 0 4}^{5}$	2,625	3,675

${ }^{3} \mathrm{~A}$ comparison of the expense-related total remuneration for the financial year 2024 per Executive Board member with the maximum annual remuneration in accordance with the remuneration system ( $€ 9,000$ thousand for the Chairman of the Executive Board and $€ 6,000$ thousand for each ordinary member of the Executive Board) shows that the maximum remuneration was compiled with also in this respect.
${ }^{4}$ This includes the expense in the amount of $€ 1,500$ thousand for the reappointment bonus for Oswald Barckhahn.
${ }^{5}$ This includes the pro rata expense in the amount of $€ 300$ thousand for the MAB for Ramon A. Mirt determined as of the end of 2024.
${ }^{6} € 2,882$ thousand of this amount are expenses for remuneration for activities in Group companies.
${ }^{7} € 1,365$ thousand of this amount are expenses for remuneration for activities in Group companies.
For 2024, total remuneration recognized as expenses pursuant to the IFRSs for all serving members of the Executive Board amounted to $€ 23,609$ thousand (previous year: $€ 21,947$ thousand). Of this total, fixed remuneration accounted for $€ 5,400$ thousand (previous year: $€ 4,000$ thousand), ancillary benefits and other remuneration for $€ 3,336$ thousand (previous year: $€ 2,524$ thousand), the short-term Variable Bonus for $€ 2,379$ thousand (previous year: $€ 4,011$ thousand), and the changes in provisions for the LTP for $€ 12,494$ thousand (previous year: $€ 11,412$ thousand).

Former Executive Board members
The table below shows the fixed and variable remuneration components granted and owed in 2024 to former Executive Board members in accordance with § 162 AktG and their relative share of total remuneration. For the sake of clarity, the amounts are shown as relating to the entire reporting year, even if the appointment of the relevant Executive Board member was terminated during the year and prior to the regular expiry of their service agreement. In accordance with § 162 (5) AktG, personal remuneration is reported until the expiry of ten years after the end of the financial year in which the Executive Board member concerned terminated their activity. For Executive Board members who left longer ago, a total figure is reported.

A total of $€ 50,781$ thousand (previous year: $€ 50,845$ thousand) has been accrued for pension obligations to former members of the Executive Board and their surviving dependents. Since 2007, newly concluded employment contracts no longer contain any corresponding pension commitments.

Remuneration Granted and Owed to Former Executive Board Members in Accordance with § 162 (1) AktG (in $€$ thousand)

	Base remuneration			Ancillary benefits and other remuneration			Short term variable remuneration			Long term variable remuneration			Pension payments		Total	Maximum remunera- tien
	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2024
Zhengrong Liu ${ }^{1}$	-	-	100	-	-	-	3,450	2,308 ${ }^{2}$	-	-	3,550	2,308	6,000 ${ }^{3}$
Relative share	$-\%$	$-\%$	2.8\%	$-\%$	$-\%$	$-\%$	97.2\%	100.0\%	$-\%$	$-\%$	100.0\%	100.0\%
Members who stepped down prior to 2014	-	-	-	-	-	-	-	-	2,168	2,329	2,1684	2,329	n/a
Relative share	$-\%$	$-\%$	$-\%$	$-\%$	$-\%$	$-\%$	$-\%$	$-\%$	100.0\%	100.0\%	100.0\%	100.0\%

${ }^{1}$ Appointment and service agreement until December 31, 2022.
${ }^{2}$ The prorated LTP 2021-2024 offered to Zhengrong Liu for the final two years of his appointment (2021 and 2022) with a total target amount of $€ 1,550$ thousand was determined by the Supervisory Board at the end of 2024 with a target achievement of $148.9 \%$, as for the current members of the Executive Board (for target achievement, see section "Remuneration structure and elements, III, g)" in this remuneration report). The resulting bonus is due for payment after the 2025 Annual General Meeting.
${ }^{3}$ The maximum remuneration p.a. set by the remuneration system contains the long-term variable remuneration with an annual maximum value on a prorated basis. Upon payment of this remuneration component, the granted and owed remuneration must therefore be compared with the total of the annual maximum values of the LTP 2021-2024 throughout its term for the purpose of verifying adherence to the maximum remuneration. The maximum remuneration awarded pro rata to Zhengrong Liu over the full term under the LTP 2021-2024 is $€ 3,100$ thousand; this shows that the maximum remuneration was adhered to.
${ }^{4}$ In addition, in 2023 Stefan De Loecker was granted a pro rata remuneration of $€ 500$ thousand base remuneration, $€ 3$ thousand ancillary benefits and $€ 500$ Variable Bonus under his service agreement that terminated on June 30, 2023.

Commitments for Executive Board members stepping down in 2024
No members left the Executive Board in 2024; accordingly, no benefits were offered to Executive Board members terminating their activity in the past year. Benefits offered to members who left the Executive Board prior to the reporting year were reported in the relevant remuneration reports.

2. Remuneration of the Supervisory Board

The remuneration of the Supervisory Board (§ 15 of the Articles of Association) takes into account the responsibilities and scope of tasks of the individual members of the Supervisory Board as well as the company's economic situation and is in line with the applicable principles, recommendations, and suggestions of the German Corporate Governance Code.

The existing provisions in $\S 15$ of the Articles of Association reasonably and sufficiently reflect these requirements as the remuneration takes due account in terms of both structure and amount of the requirements arising from the specific duties of the members of the Supervisory Board and the time required by them to duly and properly perform these duties. Moreover, the remuneration of the Supervisory Board members consists exclusively of fixed remuneration components.

In addition to the reimbursement of their expenses, the members of the Supervisory Board receive fixed remuneration of $€ 85,000$ plus an attendance fee of $€ 1,000$ for participating in the meetings of the Supervisory Board and its committees. The Chairman of the Supervisory Board receives two-and-a-half times and his deputy (according to the German Co-determination Act) one-and-a-half times this amount. Members of committees - with the exception of the Nomination Committee and the Committee established in accordance with § 27 (3) Mitbestimmungsgesetz (German Co-determination Act, MitbestG) - receive separate remuneration of $€ 20,000$ per full the financial year for their duties on these committees; the members of the Audit Committee receive twice this amount. The chair of a committee receives two-and-a-half times the remuneration of a committee member. If a member of the Supervisory Board simultaneously holds several offices for which increased remuneration is granted, they only receive the remuneration for the highest-paying office.

The amount of the remuneration for members of the Supervisory Board is also appropriate in comparison to the remuneration paid to members of the supervisory boards of other large listed companies in Germany. The appropriateness of the remuneration for the Supervisory Board ensures that Beiersdorf Aktiengesellschaft remains in a position to attract qualified candidates for office on its Supervisory Board; in this way, the remuneration for the Supervisory Board helps to promote the company's business strategy and its long-term development on a sustained basis. The remuneration for the members of the Supervisory Board is regularly reviewed for its appropriateness.

The following table shows the remuneration granted and owed (within the meaning of § 162 (1)AktG) to the Supervisory Board, including the relative shares of the fixed amount, attendance fees, and committee fees.

Supervisory Board Remuneration Granted and Owed in Accordance With § 162 (1) AktG ${ }^{1}$
(in €)

	Fixed		Attendance fees		Committee fees		Total
	2023	2024	2023	2024	2023	2024	2023	2024
Donya-Florence Amer (since April 18, 2024)	-	59,686	-	5,000	-	35,109	-	99,795
Relative share	$-\%$	$60 \%$	$-\%$	$5 \%$	$-\%$	$35 \%$	$-\%$	$100 \%$
Hilde Cambier (since April 18, 2024)	-	59,686	-	5,000	-	14,044	-	78,730
Relative share	$-\%$	$76 \%$	$-\%$	$6 \%$	$-\%$	$18 \%$	$-\%$	$100 \%$
Hong Chow	85,000	85,000	9,000	8,000	20,000	20,000	114,000	113,000
Relative share	$75 \%$	$75 \%$	$8 \%$	$7 \%$	$18 \%$	$18 \%$	$100 \%$	$100 \%$
Reiner Hansert (until April 18, 2024)	85,000	25,314	13,000	5,000	40,000	11,913	138,000	42,227
Relative share	$62 \%$	$60 \%$	$9 \%$	$12 \%$	$29 \%$	$28 \%$	$100 \%$	$100 \%$
Wolfgang Herz	85,000	85,000	9,000	11,000	20,000	20,000	114,000	116,000
Relative share	$75 \%$	$73 \%$	$8 \%$	$9 \%$	$18 \%$	$17 \%$	$100 \%$	$100 \%$
Uta Kemmerich-Keil	85,000	85,000	12,000	16,000	40,000	82,131	137,000	183,131
Relative share	$62 \%$	$46 \%$	$9 \%$	$9 \%$	$29 \%$	$45 \%$	$100 \%$	$100 \%$
Andreas Köhn (until April 18, 2024)	85,000	25,314	8,000	3,000	20,000	5,956	113,000	34,270
Relative share	$75 \%$	$74 \%$	$7 \%$	$9 \%$	$18 \%$	$17 \%$	$100 \%$	$100 \%$
Jan Koltze	85,000	85,000	6,000	8,000	-	28,087	91,000	121,087
Relative share	$93 \%$	$70 \%$	$7 \%$	$7 \%$	$-\%$	$23 \%$	$100 \%$	$100 \%$
Dr. Dr. Christine Martel (until April 18, 2024)	85,000	25,314	13,000	4,000	100,000	29,782	198,000	59,096
Relative share	$43 \%$	$43 \%$	$7 \%$	$7 \%$	$51 \%$	$50 \%$	$100 \%$	$100 \%$
Olaf Papier	85,000	85,000	12,000	14,000	40,000	40,000	137,000	139,000
Relative share	$62 \%$	$61 \%$	$9 \%$	$10 \%$	$29 \%$	$29 \%$	$100 \%$	$100 \%$
Frédéric Pflanz	85,000	85,000	16,000	19,000	50,000	50,000	151,000	154,000
Relative share	$56 \%$	$55 \%$	$11 \%$	$12 \%$	$33 \%$	$32 \%$	$100 \%$	$100 \%$
Reinhard Pöllath (Chairman)	212,500	212,500	11,000	15,000	-	-	223,500	227,500
Relative share	$95 \%$	$93 \%$	$5 \%$	$7 \%$	$-\%$	$-\%$	$100 \%$	$100 \%$
Doris Robben (since April 18, 2024)	-	59,686	-	6,000	-	14,044	-	79,730
Relative share	$-\%$	$75 \%$	$-\%$	$8 \%$	$-\%$	$18 \%$	$-\%$	$100 \%$
Prof. Manuela Rousseau (Deputy Chairwoman)	127,500	37,971	8,000	3,000	-	-	135,500	40,971
Relative share	$92 \%$	$93 \%$	$8 \%$	$7 \%$	$-\%$	$-\%$	$100 \%$	$100 \%$
Kirstin Weiland	85,000	85,000	7,000	7,000	20,000	20,000	112,000	112,000
Relative share	$76 \%$	$76 \%$	$6 \%$	$6 \%$	$18 \%$	$18 \%$	$100 \%$	$100 \%$
Barbara Wentzel (since April 18, 2024)	-	89,529	-	10,000	-	14,043	-	113,572
Relative share	$-\%$	$79 \%$	$-\%$	$9 \%$	$-\%$	$12 \%$	$-\%$	$100 \%$
Total amounts	1,190,000	1,190,000	124,000	139,000	350,000	385,109	1,664,000	1,714,109

[^0]
[^0]: ${ }^{1}$ Presented exclusive of value added tax.

3. Comparative View of the Annual Change in Remuneration and Earnings Performance

The following table presents a comparative view, in accordance with § 162 (1) sentence 2 no. 2 AktG, of the annual change in Executive Board and Supervisory Board remuneration, the earnings performance of Beiersdorf AG and the Consumer Business Segment, and the average remuneration of employees.

The change in Executive Board and Supervisory Board remuneration shown relates to the remuneration granted or owed within the meaning of $\S 162$ (1) sentence 1 AktG. Relative changes in Executive Board and Supervisory Board remuneration may therefore be attributable solely to individuals joining or leaving the boards during the year or changing roles, or to the payment of variable remuneration components.

Earnings performance is shown based on the development of Beiersdorf AG's profit after tax in accordance with § 275 (2) no. 17 Handelsgesetzbuch (German Commercial Code, HGB). Since the remuneration of Executive Board members also depends to a large extent on the development of other key performance indicators in the Consumer Business Segment, the development of organic sales and the EBIT margin (excluding special factors) for the Consumer Business Segment is also shown.

The comparison with the development of the remuneration of employees is based on the average remuneration of the workforce in the Beiersdorf companies belonging to the Consumer Business Segment on a full-time equivalent basis. Since the remuneration structures, particularly in the foreign subsidiaries, are many and varied, the comparison should be based only on the development of average remuneration for the workforce in Germany. The remuneration granted and owed for the total workforce in the financial year (including senior management and executive staff within the meaning of § 5 (3) Betriebsverfassungsgesetz (Works Constitution Act, BetrVG) was taken into account in that. If employees additionally received remuneration as a member of the Supervisory Board of Beiersdorf AG, this was not taken into account. To enable comparison, the remuneration of part-time employees was calculated on a full-time equivalent basis. This comparison group was also used to review the appropriateness of the remuneration of Executive Board members.

Comparison of Annual Change in Executive and Supervisory Board Remuneration in Accordance with $\S 162$ AktG

Executive Board remuneration (in € thousand)	2024 in EUR	2023 in EUR	2024 vs. 2023 in \%	2023 vs. 2022 in \%	2022 vs. 2021 in \%	2021 vs. 2020 in \%
Vincent Warnery (Chairman since May 1, 2021)	13,192	2,512	$425.2 \%$	$-3.9 \%$	$-62.9 \%$	744.3\%
Oswald Barckhahn (since October 15, 2021)	9,966	1,085	$818.5 \%$	$-3.6 \%$	$364.9 \%$	$0.0 \%$
Astrid Hermann (since January 1, 2021)	5,521	958	$476.3 \%$	$0.1 \%$	$-6.8 \%$	$0.0 \%$
Nicola D. Lafrentz (since May 1, 2022)	2,797	945	$196.0 \%$	$38.4 \%$	$0.0 \%$	$0.0 \%$
Grita Loebsack (since January 1, 2022)	7,236	1,567	$361.8 \%$	$3.2 \%$	$0.0 \%$	$0.0 \%$
Ramon A. Mirt (since March 1, 2019)	6,593	3,092	$113.2 \%$	$-34.5 \%$	$243.3 \%$	$12.2 \%$
Patrick Rasquinet (since June 1, 2021)	4,802	1,026	$368.0 \%$	$-4.7 \%$	$63.4 \%$	$0.0 \%$
Executive Board members who left prior to 2024
Thomas Ingelfinger (until June 30, 2022)	-	-	$0.0 \%$	$-100.0 \%$	$170.2 \%$	$14.0 \%$
Zhengrong Liu (until December 31, 2022)	2,308	3,550	$-35.0 \%$	$231.2 \%$	$7.5 \%$	$24.2 \%$

Comparison of Annual Change in Executive and Supervisory Board Remuneration in Accordance with $\S 162$ AktG

	$\begin{gathered} 2024 \ \text { in EUR } \end{gathered}$	$\begin{gathered} 2023 \ \text { in EUR } \end{gathered}$	$\begin{gathered} 2024 \text { vs. } \ 2023 \ \text { in\% } \end{gathered}$	$\begin{gathered} 2023 \text { vs. } \ 2022 \ \text { in\% } \end{gathered}$	$\begin{gathered} 2022 \text { vs. } \ 2021 \ \text { in\% } \end{gathered}$	$\begin{gathered} 2021 \text { vs. } \ 2020 \ \text { in \% } \end{gathered}$
Stefan De Loecker (until June 30, 2021)	-	1,003	$-100.0 \%$	$-53.5 \%$	$-69.2 \%$	$-229.9 \%$
Ralph Gusko (until December 31, 2019)	-	-	0.0\%	$-100.0 \%$	$-50.1 \%$	$-16.2 \%$
Asim Naseer (until April 5, 2021)	-	-	0.0\%	$-100.0 \%$	$-42.5 \%$	2.1\%
Dessi Temperley (until April 5, 2021)	-	-	0.0\%	0.0\%	$-100.0 \%$	$-42.8 \%$

Supervisory Board remuneration (in € thousand)

Reinhard Pöllath (Chairman since April 30, 2008)	228	224	1.8\%	0.0\%	$-1.3 \%$	12.3\%
Donya Florence Amer (since April 18, 2024)	100	-	100.0\%	0.0\%	0.0\%	0.0\%
Hilde Cambier (since April 18, 2024)	79	-	100.0\%	0.0\%	0.0\%	0.0\%
Hong Chow (since April 20, 2017)	113	114	$-0.9 \%$	0.9\%	$-11.4 \%$	6.1\%
Reiner Hansert (until April 18, 2024)	42	138	$-69.4 \%$	0.9\%	$-11.4 \%$	6.1\%
Wolfgang Herz (since April 29, 2020)	116	114	1.8\%	0.0\%	$-2.6 \%$	23.8\%
Uta Kemmerich-Keil (since August 1, 2022)	183	137	33.7\%	159.0\%	0.0\%	0.0\%
Andreas Köhn (until April 18, 2024)	34	113	$-69.7 \%$	$-0.9 \%$	32.4\%	0.0\%
Jan Koltze (since April 17, 2019)	121	91	33.1\%	0.0\%	$-2.2 \%$	17.4\%
Dr. Dr. Christine Martel (until April 18, 2024)	59	198	$-70.2 \%$	0.5\%	$-6.9 \%$	6.1\%
Olaf Papier (since April 17, 2019)	139	137	1.5\%	$-1.4 \%$	3.6\%	33.8\%
Frédéric Pflanz (since April 17, 2019)	154	151	2.0\%	$-2.6 \%$	$-7.2 \%$	33.9\%
Doris Robben (since April 18, 2024)	80	-	100.0\%	0.0\%	0.0\%	0.0\%
Prof. Manuela Rousseau (Deputy Chairwoman until April 18, 2024)	41	136	$-69.8 \%$	$-2.2 \%$	$-8.9 \%$	$-2.0 \%$
Kirstin Weiland (since April 17, 2019)	112	112	0.0\%	0.9\%	$-3.5 \%$	14.7\%
Barbara Wentzel (Deputy Chairwoman since April 18, 2024)	114	-	100.0\%	0.0\%	0.0\%	0.0\%
Supervisory Board members who left prior to 2024
Martin Hansson (until July 31, 2022)	-	-	0.0\%	$-100.0 \%$	$-46.4 \%$	2.6\%
Michael Herz (until April 29, 2020)	-	-	0.0\%	0.0\%	$-100.0 \%$	$-79.1 \%$
Regina Schillings (until April 1, 2021)	-	-	0.0\%	0.0\%	$-100.0 \%$	$-25.1 \%$
Earnings performance
Profit after tax Beiersdorf AG in accordance with HGB (in € million)	249	265	$-6.0 \%$	150.4\%	$-36.9 \%$	2.9\%
EBIT margin Consumer Business Segment (in \%)	13.4\%	12.9\%	0.5\%	0.6\%	0.2\%	$-0.2 \%$
Sales Consumer Business Segment (in € million); changes vs. previous year in \% (organic)	8,162	7,780	7.5\%	12.5\%	10.5\%	8.8\%
Average remuneration of employees (in € thousand)
Remuneration of total workforce in the Consumer Business Segment (Germany)	97	95	2.0\%	3.3\%	2.7\%	1.5\%

Independent Auditor's Report on the Audit of the Remuneration Report in Accordance with Section 162 (3) AktG

To Beiersdorf Aktiengesellschaft

Opinion

We have formally audited the remuneration report of the Beiersdorf AG, Hamburg, for the financial year from January 1, 2024 to December 31, 2024 to determine whether the disclosures pursuant to § [Article] 162 Abs. [paragraphs] 1 and 2 AktG [Aktiengesetz: German Stock Corporation Act] have been made in the remuneration report. In accordance with § 162 Abs. 3 AktG, we have not audited the content of the remuneration report.

In our opinion, the information required by $\S 162$ Abs. 1 and 2 AktG has been disclosed in all material respects in the accompanying remuneration report. Our opinion does not cover the content of the remuneration report.

Basis for the opinion

We conducted our formal audit of the remuneration report in accordance with § 162 Abs. 3 AktG and IDW [Institut der Wirtschaftsprüfer: Institute of Public Auditors in Germany] Auditing Standard: The formal audit of the remuneration report in accordance with § 162 Abs. 3 AktG (IDW AuS 870 (09.2023)). Our responsibility under that provision and that standard is further described in the "Auditor's Responsibilities" section of our auditor's report. As an audit firm, we have complied with the requirements of the IDW Quality Management Standard: Requirements to quality management for audit firms [IDW Qualitätsmanagementstandard - IDW QMS 1 (09.2022)]. We have complied with the professional duties pursuant to the Professional Code for German Public Auditors and German Chartered Auditors [Berufssatzung für Wirtschaftsprüfer und vereidigte Buchprüfer - BS WP/vBP], including the requirements for independence.

Responsibility of the Executive Board and Supervisory Board

The Executive Board and the Supervisory Board are responsible for the preparation of the remuneration report, including the related disclosures, that complies with the requirements of $\S 162 \mathrm{AktG}$. They are also responsible for such internal control as they determine is necessary to enable the preparation of a remuneration report, including the related disclosures, that is free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and misappropriation of assets) or error.

Auditor's Responsibilities

Our objective is to obtain reasonable assurance about whether the information required by $\S 162$ Abs. 1 and 2 AktG has been disclosed in all material respects in the remuneration report and to express an opinion thereon in an auditor's report.

We planned and performed our audit to determine, through comparison of the disclosures made in the remuneration report with the disclosures required by $\S 162$ Abs. 1 and 2 AktG, the formal completeness of the remuneration report. In accordance with $\S 162$ Abs 3 AktG, we have not audited the accuracy of the disclosures, the completeness of the content of the individual disclosures, or the appropriate presentation of the remuneration report.

Hamburg, February 21, 2025
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft

Michael Reuther Thorsten Dzulko

German Public Auditor German Public Auditor

Ten-Year Overview

(in € million, unless otherwise stated)

		2015	2016	2017	$2018{ }^{1}$	$2019{ }^{2,3}$	2020	2021	2022	2023	2024
Sales		6,686	6,752	7,056	7,233	7,653	7,025	7,627	8,799	9,447	9,850
Change against prior year (nominal)	(in \%)	6.4	1.0	4.5	2.5	5.8	$-8.2$	8.6	15.4	7.4	4.3
Consumer		5,546	5,606	5,799	5,890	6,274	5,700	6,129	7,131	7,780	8,162
tesa		1,140	1,146	1,257	1,343	1,379	1,325	1,498	1,668	1,667	1,688
Europe ${ }^{1}$		3,447	3,461	3,568	3,673	3,757	3,467	3,676	3,900	4,135	4,313
Americas		1,243	1,252	1,307	1,267	1,372	1,347	1,527	2,126	2,484	2,567
Africa/Asia/Australia ${ }^{1}$		1,996	2,039	2,181	2,293	2,524	2,211	2,424	2,773	2,829	2,970
EBITDA		1,091	1,163	1,238	1,262	1,270	1,085	1,220	1,379	1,554	1,651
Operating result (EBIT)		962	1,015	1,088	1,097	1,032	828	933	1,092	1,105	1,294
Profit before tax		968	1,040	1,022	1,048	1,037	821	907	1,096	1,105	1,326
Profit after tax		671	727	689	745	736	577	655	771	749	928
Return on sales after tax	(in \%)	10.0	10.8	9.8	10.3	9.6	8.2	8.6	8.8	7.9	9.4
Earnings per share	(in €)	2.91	3.13	2.96	3.21	3.17	2.47	2.81	3.33	3.24	4.05
(Proposed) Total dividend - equity holders		159	159	159	159	159	159	159	159	227	223
(Proposed) Dividend per share	(in €)	0.70	0.70	0.70	0.70	0.70	0.70	0.70	0.70	1.00	1.00
Beiersdorf's shares - year-end closing price		84.16	80.60	97.90	91.16	106.65	94.44	90.38	107.20	135.70	124.00
Market capitalization as of Dec. $31^{4}$		19,089	18,282	22,206	20,777	24,190	21,421	20,500	24,315	30,779	27,679
Research and development expenses		183	188	196	211	236	246	268	291	320	354
as \% of sales		2.7	2.8	2.8	2.9	3.1	3.5	3.5	3.3	3.4	3.6
Employees as of Dec. 31	(FTE)	17,659	17,934	18,934	20,059	20,654	20,306	20,567	21,401	21,958	22,791
Intangible assets		119	119	140	200	581	545	538	1,111	938	888
Property, plant, and equipment		1,054	1,046	1,026	1,239	1,619	1,630	1,845	2,201	2,541	2,719
Non-current financial assets/securities		1,318	1,919	2,554	2,642	2,830	3,462	3,990	3,233	2,726	2,630
Inventories		772	739	854	986	1,012	1,001	1,144	1,557	1,514	1,612
Receivables and other assets		2,692	2,878	2,730	2,874	2,867	2,562	2,746	3,165	3,777	3,955
Cash and cash equivalents		918	872	901	919	1,145	1,005	1,036	1,080	1,133	1,207
Equity		4,201	4,677	5,125	5,647	6,093	6,263	6,894	7,805	8,339	8,495
Liabilities		2,672	2,896	3,080	3,213	3,961	3,942	4,405	4,543	4,290	4,516
Provisions		1,074	1,242	1,207	1,227	1,478	1,594	1,517	1,142	1,129	1,132
Trade payables		1,152	1,244	1,420	1,554	1,660	1,642	1,973	2,328	2,234	2,571
Other liabilities		446	410	453	443	823	704	915	1,073	927	813
Total equity and liabilities		6,873	7,573	8,205	8,860	10,054	10,205	11,299	12,348	12,629	13,011
Equity ratio	(in \%)	61	62	62	64	61	61	61	63	66	65

[^0]
[^0]: ${ }^{1}$ Change in the regional designation of tesa Turkey from Europe to Asia (previous year Europe: 64,161 million; previous year Africa/Asia/Australia: 62,802 million)
${ }^{2}$ The figures for the financial year 2019 have been influenced by the initial application of the leasing standard IFRS 16. This affects especially the following positions: EBITDA ( $+€ 6.4$ million), property, plant, and equipment ( $+€ 177$ million), other liabilities ( $+€ 177$ million), and key figures derived therefrom.
${ }^{3}$ The figures as of December 31, 2018, as well as December 31, 2019, have been amended due to the finalization of the purchase price allocation for the Coppertone business and due to an adjustment to the valuation of an acquisition made in 2018 in the tesa Business Segment.
${ }^{4}$ Due to the change in the definition of market capitalization in 2024, the previous years have been adjusted. From 2024, the calculation is based on outstanding shares, excluding treasury shares.

Contact Information

$\rightarrow$	Published by	$\rightarrow$ Contributors
	Beiersdorf Aktiengesellschaft Beiersdorfstrasse 1-9 Z2529 Hamburg Germany	Design/Realization nexxar, Vienna
		Translation/Proofreading Leinhäuser Language Services GmbH, Unterhaching

$\rightarrow$ Editorial Team and Concept
Corporate Communications
Telephone: +49 40 4909-2001
E-Mail: cc@beiersdorf.com
$\rightarrow$ Additional Information
Corporate Communications
Telephone: +49 40 4909-2001
E-Mail: cc@beiersdorf.com
Investor Relations
Telephone: +49 40 4909-5000
E-Mail: investor.relations@beiersdorf.com
Website
www.beiersdorf.com

In consideration of sustainability aspects, the Annual Report will no longer be provided as a printed, but only as an online version. The online versions of the financial publications of Beiersdorf are available at www.beiersdorf.com/financial_reports.

This Annual Report is also available in German.

Financial Calendar

2025

April 15
Quarterly Statement
January to March 2025

Appri1 6

Annual General Meeting

Appri1 7

Annual General Meeting

August 6

Appri1 6

Appri1 May

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Beiersdorf

Beiersdorf Aktiengesellschaft
Beiersdorfstraße 1-9
22529 Hamburg, Germany
Tel.: + 49 40 4909-0, Fax: + 49 40 4909-3434
Website: www.beiersdorf.com