Givaudan Sa · SIX:GIVN
Givaudan Sa — H1 2019 Earnings Presentation
25 slides from Givaudan Sa's earnings presentation, Jul 18, 2019
Slide 1: 2019 Half year results
2019 Half year results Excellent sales growth – on track to deliver 2020 18 July 2019
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2019 Half Year Results Presentation 18 July 2019 2
Slide 3: Performance highlights
2019 Half year results Performance highlights • Sales of CHF 3,094 million, up 6.3% on a like-for-like* basis and 15.7% in Swiss francs • Project pipeline and win rates sustained at a high level • Strategic focus areas and acquired businesses strongly contributing to growth • EBITDA of CHF 660 milli
Slide 4: 2019 Sales performance: excellent performance in both divisions
2019 Sales performance Excellent performance in both divisions In million CHF 3,094 1,733 1,361 Group Fragrances Flavours % 2019 growth on LFL* basis 6.3% 8.6% 4.4% % 2019 growth in CHF 15.7% 11.3% 19.4% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals 2019 Half Year
Slide 5: Sales evolution by market
Sales evolution by market Strong contribution from high growth markets In million CHF 1,802 1,531 1,292 1,143 HY2018 HY2019 HY2018 HY2019 Mature High Growth % of total sales 57% 58% 43% 42% % 2019 growth on LFL* basis 3.5% 10.0% * LFL (like-for-like) excludes the impact of currency, acquisitions and
Slide 6: Sales evolution by region
Sales evolution by region Good growth achieved across all geographies In million CHF 1,122 971 838 788 712 683 346 308 HY HY HY HY HY HY HY HY 2018 2019 2018 2019 2018 2019 2018 2019 LATAM APAC NA EAME % 2019 growth on LFL* basis 16.2% 5.6% 3.8% 5.4% * LFL (like-for-like) excludes the impact of curr
Slide 7: Divisional sales performance: Fragrance Division
Divisional sales performance Fragrance Division Fine Fragrance increased 8.5% LFL* Fragrance Division sales in CHF million • Sustaining market leadership in Fine Fragrances • High level of new business wins across all customer groups combined with market 1,361 performance of recent launches Consumer
Slide 8: Divisional sales performance: Flavour Division
Divisional sales performance Flavour Division Asia Pacific increased 6.2% LFL* Flavour Division sales in CHF million • Double-digit growth in high growth markets of Indonesia, Malaysia, Philippines and Vietnam • Significant growth in Beverages and Savoury 1,733 EAME increased 2.8% LFL • Double-digit
Slide 9: Acquisition update: 2020 strategy in motion
Acquisition update 2020 strategy in motion 2014 2016 2018 2019 Soliance Spicetec Centroflora Nutra AMSilk Active Beauty Naturals Naturals Active Beauty Integrated Solutions Expressions Golden Frog* Parfumées Naturals L&R Fragrances 2015 2017 Naturex Naturals Health and well-being Approx. Induchem Ac
Slide 10: Naturex integration
Naturex integration Project fully on track – back to growth • Fully aligned with 2020 strategy • Expansion into new spaces beyond flavours • Increasing consumer preference for naturals • Complementary customer base • Very good cultural fit Strategic rationale 2018 Achievements HY 2019 Update • Acqui
Slide 11: Givaudan Business Solutions
Givaudan Business Solutions Implementation well advanced - on track to finalise by 2020 EAME NOAM Transition completed Transition completed LATAM Transition completed, stabilisation ongoing • GBS now fully implemented in Argentina and Chile APAC Phase I completed, • Brazil in stabilisation Phase II
Slide 12: Tom Hallam, Chief Financial Officer
Tom Hallam Chief Financial Officer 2019 Half Year Results Presentation 18 July 2019 12
Slide 13: Performance highlights
2019 Half year results Performance highlights • Sales of CHF 3,094 million, up 6.3% on a like-for-like* basis and 15.7% in Swiss francs • EBITDA of CHF 660 million compared to CHF 601 million in 2018 • Reported EBITDA margin of 21.3% compared to 22.5% in 2018, with the underlying EBITDA remaining st
Slide 14: Exchange rate development
2019 Half year results Exchange rate development: Operating results largely unaffected by currencies, despite the continued currency swings 4% 2% 1% 0% 0% 0% -2% -3% -7% JPY USD GBP EUR SGD BRL CNY MXN IDR HY 2019 0.91 1.00 1.29 1.13 0.74 0.26 0.15 0.05 0.70 HY 2018 0.89 0.96 1.32 1.17 0.73 0.28 0.1
Slide 15: Operating performance: Group
Operating performance Group: Sustained good profitability 44.2% Gross margin 41.2% EBITDA in CHF million Sales of CHF 3,094 million, an increase of 6.3% on a like-for-like basis and 660 15.7% in Swiss francs Gross margin of 41.2%, compared to 601 44.2% in 2018, as a result of the higher input costs
Slide 16: Operating performance: Fragrance Division
Operating performance Fragrance Division EBITDA 270 in CHF million Sales of CHF 1,361 million, an increase 250 of 8.6% on a like-for-like basis and 11.3% in Swiss francs +8.2% EBITDA of CHF 270 million, increased from CHF 250 million in 2018 GBS costs of CHF 19 million, compared with CHF 25 million
Slide 17: Operating performance: Flavour Division
Operating performance Flavour Division EBITDA in CHF million Sales of CHF 1,733 million, an increase 390 of 4.4% on a like-for-like basis and 19.4% in Swiss francs 351 +11.1% EBITDA of CHF 390 million, an increase of 11.1%, driven by continued productivity gains and cost discipline EBITDA margin of
Slide 18: Amortisation of intangible assets
Amortisation of intangible assets • Pre Quest amortisation of Total annual amortisation charge intangible assets of approx. (in million CHF, estimated) CHF 17 million p.a. 125 160 • Quest (exc. Goodwill) 157 152 112 96 • Other acquisitions: Soliance, Induchem, Spicetec, Activ, 40 40 Vika, Centroflor
Slide 19: Net income
Net income 12.3% of sales Income before tax of CHF 437 million Net income 380 in CHF million compared to CHF 431 million in 2018 371 Net income of CHF 380 million, or 12.3% of sales, versus CHF 371 million, or 13.9% of sales in 2018 Effective tax rate of 13%, compared to 14% in 2018 Basic EPS of CHF
Slide 20: Free cash flow
Free cash flow Sustained underlying performance Free cash flow Free cash flow of CHF 148 million, in CHF million compared to CHF 113 million in 2018, an increase of 31%. Free cash flow is 4.8% of sales compared to 4.2% in 2018 Operating cash flow of CHF 271 million, 148 compared to CHF 269 million i
Slide 21: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2019 Half Year Results Presentation 18 July 2019 21
Slide 22: 2019 Outlook: Key themes
2019 Outlook Key themes Growth outlook Raw materials Strategic focus areas • Continued confidence in our • Raw materials increasing by • Strong focus on Naturex – growth strategies 5-6% as forecast integration, growth strategies and service level • Good momentum in high • Continuing to implement gro
Slide 23: Partner of choice
Responsible growth. Shared success. Growing with Delivering Partnering for our customers with excellence shared success 4-5% 12-17% Average organic sales Average free cash Partner growth* flow as % of sales* of choice 4.9% in 2016-18 12.4% in 2016-18 * Over a five-year period by 2020 Creating additi
Slide 24: Q&A
Q&A 2019 Half Year Results Presentation 18 July 2019 24
Slide 25: Disclaimer
Disclaimer No warranty and no liability: While Givaudan is making great efforts to include accurate and up-to-date information, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided on this presentation/handout and disclaim any