Slide 1: Half Year 2022 results presentation
Half Year 2022 results presentation 10 FEBRUARY 2022 Firmenich HY 2022 results presentation • 1
Slide 2: Disclaimer
Disclaimer • This presentation is provided for information • Nothing in this presentation should be construed • The information set out herein may be subject to purposes only and on the basis of the acceptance as a profit forecast or profit estimate. Nothing in updating, revision, verification and a
Slide 3: Your presenters
Your presenters CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Gilbert Ghostine Benoit Fouilland Joined Firmenich 1 October 2014. Joined Firmenich 1 September 2020. Previously 21 years at Diageo most Previously at Criteo, SAP, Business recently leading APAC. Objects and British Telecom. Firmenich H
Slide 4: Agenda
Agenda 01 HY 2022 IN REVIEW 03 02 Q&A FINANCIAL REVIEW 04 APPENDIX Firmenich HY 2022 results presentation • 4
Slide 5: HY 2022 in review
01 HY 2022 in review CHIEF EXECUTIVE OFFICER Gilbert Ghostine Firmenich HY 2022 results presentation • 5
Slide 6: At a glance
At a glance SOLID RESULTS DESPITE CHALLENGING DELIVERING AGAINST OUR AMBITIONS EXTERNAL ENVIRONMENT ▪ Accelerating profitable organic growth Double-digit +12.3% growth in key ▪ Delivering breakthrough innovation markets and Revenue ▪ Leading in natural, renewable and sustainable segments products ▪
Slide 7: Accelerating profitable organic growth
Accelerating profitable organic growth REVENUE GROWTH ACROSS REVENUE GROWTH IN KEY GROWING DIVISIONS & SEGMENTS GEOGRAPHIES PROFITABILITY Taste & Fine Europe India Adj. Beyond Fragrance EBITDA +13% +38% +22% +13% +25% Consumer Ingredients China North Adj. Fragrances America EBITDA margin -0% +24% +1
Slide 8: Delivering breakthrough innovation
Delivering breakthrough innovation REVENUE GROWTH IN KEY INITIATIVES CONTINUED INVESTMENT AND ROLLOUTS Sugar Plant- Reduction based Proteins Biodegradable lily-of-the- Sugar reduction and valley ingredient, developed plant-based protein solutions +25% +141% with Green Chemistry for dairy and nutriti
Slide 9: Leading in natural, sustainable, renewable products
Leading in natural, sustainable, renewable products Muguet Firgood™ PopScent® Eco Castets, France 100% natural ingredient, Biodegradable and renewable Additional capacity for combining gentle extraction fragrance encapsulation renewable ingredients and vertical farming solutions Firmenich HY 2022 re
Slide 10: Executing with excellence
10 Executing with excellence FACING A CHALLENGING ENVIRONMENT PROTECTED SUPERIOR CUSTOMER SERVICE RAW MATERIALS SUPPLY CHAIN ▪ Serving growing demand ▪ Prioritized customer security of supply ▪ Inflationary ▪ Global transportation environment & logistics issues ▪ Higher safety inventories ▪ Industry
Slide 11: Leading the industry in ESG
Leading the industry in ESG 37th of nearly 15,000 1 of only 2 Top 1% of 85,000+ companies companies companies worldwide and worldwide to be worldwide industry leader triple A for 4 consecutive years ESG Risk Rating: 7.5 Score: 88/100 Firmenich HY 2022 results presentation • 11
Slide 12: Priorities for H2
Priorities for H2 22 01 02 03 ORGANIC GROWTH AND LEADING IN BALANCE CASH MARKET SHARE GAINS BREAKTHROUGH GENERATION WHILE INNOVATION PROTECTING CUSTOMER SERVICE LEVEL Firmenich HY 2022 results presentation • 12
Slide 13: Financial review
02 Financial review CHIEF FINANCIAL OFFICER Benoit Fouilland Firmenich HY 2022 results presentation • 13
Slide 14: Double-digit Revenue growth
Double-digit Revenue growth REVENUE & GROWTH In CHF m +12.2% -0.1% +12.3% ▪ Strong topline performance despite ongoing challenges 2,241 ▪ Strong volume growth across divisions 1,997 and favorable product mix ▪ Continued investment in strategic growth markets and segments HY 2021 Growth FX HY 2022 at
Slide 15: Solid Revenue growth across regions
Solid Revenue growth across regions HY 2022 Revenue (CHFm) Revenue growth at constant currency, % Firmenich HY 2022 results presentation • 15
Slide 16: Continued investment in high growth markets
Continued investment in high growth markets South China Turkey End-to-end customer co-creation center State-of-the-art production hub serving Middle-East and “Stans” countries Firmenich HY 2022 results presentation • 16
Slide 17: Higher profitability driven by volume and favorable product mix
ADJUSTED EBITDA Higher profitability driven by volume and favorable product mix ADJ. EBITDA In CHF m and as % of revenue +25.3% ▪ Volume growth ▪ Favorable product mix linked to growth in Fine Fragrance 460 460 ▪ Stronger margins in Taste & Beyond 367 367 and Ingredients 18.4% 20.5% ▪ Ongoing cost i
Slide 18: Double-digit Revenue growth in Fine Fragrance and Ingredients
PERFUMERY & INGREDIENTS Double-digit Revenue growth in Fine Fragrance and Ingredients, with margin expansion REVENUE & GROWTH ADJ. EBITDA In CHF m In CHF m and as % of revenue +11.4% +22.5% -0.3% +11.7% 1,342 1,495 308 251 18.7% 20.6% HY 2021 Growth FX HY 2022 HY 2021 HY 2022 at Constant Currency ▪
Slide 19: Double-digit Revenue and Adj. EBITDA growth: Taste & Beyond
TASTE & BEYOND Double-digit Revenue and Adj. EBITDA growth REVENUE & GROWTH ADJ. EBITDA In CHF m In CHF m and as % of revenue +13.9% +31.4% +0.5% +13.4% 746 153 116 655 17.8% 20.5% HY 2021 Growth at FX HY 2022 HY 2021 HY 2022 Constant Currency ▪ Double-digit growth across all categories ▪ Volume gro
Slide 20: Strong Net Profit, partly offset by increase in safety inventories
FREE CASH FLOW Strong Net Profit, partly offset by increase in safety inventories In CHF m Cash conversion ratio 36.0% +166 -151 +20 281 -10.7% -73 ▪ Net Profit before tax: +46.7% 182 -81 162 ▪ Working capital impacted by increase in safety inventories above usual levels, to preserve customer servic
Slide 21: Continued deleveraging, in line with strong investment-grade credit rating
LEVERAGE & FINANCIAL POLICY Continued deleveraging, in line with commitment to strong investment-grade credit rating ADJUSTED LEVERAGE (S&P method estimate) MID-TO-LONG TERM FINANCIAL POLICY Leverage (in CHFm) Aim to maintain a conservative capital structure Leverage commensurate with a strong inves
Slide 22: Q&A
03 Q&A Firmenich HY 2022 results presentation • 22
Slide 23: Appendix
04 Appendix Firmenich HY 2022 results presentation • 23
Slide 24: Alternative performance measurements
Alternative performance measurements GROWTH AT CONSTANT CURRENCY (CCY) GROWTH ON AN ORGANIC BASIS (ORGANIC) Growth at Constant Currency is used by our management Growth on an Organic Basis is used by our management and Board of Directors to evaluate operating and Board of Directors to evaluate opera
Slide 25: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) REVENUE GROWTH ON AN ORGANIC BASIS AT CONSTANT CURRENCY (OCCY) Revenue Growth on an Organic Basis at Constant Currency is used by our management and Board of Directors to evaluate operating performance. We believe that the elimination of the impact of bus
Slide 26: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) EBITDA EBITDA is defined as earnings before financial income (expense), tax depreciation and amortization. It corresponds to operating profit before depreciation, amortization and impairment losses. For the six months ended (In CHF m) December 31, 2021 De
Slide 27: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) ADJUSTED EBITDA Adjusted EBITDA is a measure used by our management and Board of Directors to evaluate our core operating performance. We define adjusted EBITDA as EBITDA adjusted to eliminate the impact of identified items of non- recurring nature and/or
Slide 28: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) FREE CASH FLOW (FCF) Free Cash Flow is a measure used by our management and Board of Directors to evaluate our ability to generate cash to return capital to shareholders, repay debt and fund potential acquisitions. We define Free Cash Flow as cash flows f
Slide 29: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) NET DEBT Net Debt is a measure used by management and Board of Directors to assess our financial position. We define Net Debt as the sum of short-term and long-term financial debt less cash, cash equivalents and short-term financial investments. See note
Slide 30: Debt profile
Debt profile MATURITY PROFILE OF FIRMENICH FUNDING In CHF m 750 776 776 776 RCF (undrawn) Other bank debt CHF Bond 475 Hybrid Bond EUR Bond 108 2022 2023 2024 2025 2026 2027 2028 2029 2030 Firmenich HY 2022 results presentation • 30
Slide 31: Thank you
Thank you Firmenich HY 2022 results presentation • 31