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Measurement of Fair ValuesThe Group%u2019s financial instruments for which Level 2 and Level 3 fair values are determined as per below valuation techniques and specific unobservable inputs.The forward exchange contracts represent Level 2 in the fair value hierarchy and are classified as fi,nancial instruments at fair value through profit or loss. The fair value is determined using the discounting method applying the zero-coupon curve at the financial reporting date.During previous years, the Group subscribed to convertible loans for a total of CHF 8.8 million of aCommerce Group Ltd. (the Groups equity investment is accounted as investment in associates). The convertible loan assets are classified as financial instruments at fair value through profit and loss (Note 12) and revaluation in 2023 resulted in a gain of CHF 8.0 million.As at December 31, 2023, the Group has performed an impairment test for its investments in aCommerce (Note 19) triggered by additional need of financing and restructuring. The recoverable amount has been determined based on fair value less cost of disposal applying different possible scenarios. Amongst various scenarios, two relevant scenarios were identified, and probability weighted (50:50): A trade sale in 2024 or a trade sale in 2025. The valuation was determined based on aCommerce%u2019s revenue forecast and market multiples determined by management applying peer information. The waterfall payout of the estimated net present value of proceeds was then allocated to the carrying amount of the individual instruments (secured note, convertible debt and equity investment). The revaluation of the Groups investment in convertible notes, measured at FVPL, resulted in a gain of CHF 8.0 million recorded in financial income. The scenarios applied are based on observable revenue multiples (Level 3 input) ranging from 0.8 to 1.0. The discount rate applied is 13.5%. Due to the specific waterfall structure, sensitivity to forecasted revenue scenarios (lower range) and (higher range) does not have any impact on the valuation of the convertible loans.The valuation analysis as per December 31, 2022, included for the derivative component a Monte Carlo based simulation on the estimate (not listed) stock price of aCommerce (Level 3 input) and resulted in a loss of CHF 0.7 million.The contingent considerations represent Level 3 in the fair value hierarchy and are classified as financial liabilities at fair value through profit or loss. The contingent consideration liabilities as per December 31, 2023, of CHF 29.7 million principally relate to the acquisitions of Refarmed (CHF 12.5 million), DNIV (CHF 7.6 million), Georg Breuer (CHF 5.0 million), Partizan (CHF 4.2 million) and Acutest (CHF 0.4 m).Partizan: At acquisition date in 2023, the Group has estimated the normalized EBITDA targets (significant unobservable inputs) for the 12-month periods following September 29, 2023, and 2024 and has determined that the target amount of EBITDA would be achieved and therefore target consideration would be payable. The estimated future cashflows have been discounted to present value (Level 2 input). If the normalized EBITDA is higher/lower by 10.0%, holding all other variables constant, the fair value would be higher/lower by CHF 0.4 million.Refarmed: At acquisition date in 2022, the Group estimated the normalized EBITDA targets (significant unobservable inputs) for the 12-month periods following July 1, 2022, 2023 and 2024 and has determined that 120.0% of the target amount of EBITDA would be achieved and therefore 120.0% of target consideration would be payable. The estimated future cashflows were discounted to present value (Level 2 input). The Group paid the first earnout in 2023 principally as per original estimate, reduced the second earnout by approx.10.0% and maintained the third earnout as per original estimate. If the normalized EBITDA is higher/lower by 10.0%, holding all other variables constant, the fair value would be higher/lower by CHF 1.1 million.DNIV: At acquisition date in 2022, the Group estimated the normalized EBITDA targets (significant unobservable inputs) for the 12-month periods following July 1, 2022 and 2023 and has determined that the target amount of EBITDA would be achieved and therefore target consideration would be payable. The estimated future cashflows were discounted to present value (Level 2 input). The Group paid the first earnout in 2023 of about 10.0% below original estimate and reduced the second earnout by approx. 25.0%. If the normalized EBITDA is higher/lower by 10.0%, holding all other variables constant, 116 Notes to the Consolidated Financial Statements