Givaudan Sa · SIX:GIVN
Givaudan Sa — FY2020 Earnings Presentation
32 slides from Givaudan Sa's earnings presentation, Jan 29, 2021
Slide 1: 2020 Full Year Results: Excellent Financial Performance
2020 Full Year Results Excellent Financial Performance 2020 Strategy delivered 29/01/2021
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer
Slide 3: 2020 Full year results: Performance highlights
2020 Full year results Performance highlights • Sales of CHF 6.3 billion, up 4.0% on a like-for-like* basis and 1.9% in Swiss francs • EBITDA of CHF 1,397 million, an increase of 9.6%; comparable EBITDA margin of 22.8% up from 21.5% in 2019 • Free cash flow of CHF 811 million or 12.8% of sales • Pro
Slide 4: Sales performance: Good growth in both divisions
Sales performance Good growth in both divisions in million CHF 6,322 3,398 2,924 Fragrance & Taste & Group Beauty Wellbeing % 2020 growth on LFL* basis 4.0% 5.4% 2.8% % 2020 growth in CHF 1.9% 4.5% -0.2% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals 2020 Full year
Slide 5: Sales portfolio performance: Covid-19 impact analysis
Sales portfolio performance Covid-19 impact analysis Lower impacted business LFL* growth 2020 Q1 Q2 Q3 Q4 FY 16% Group 7.5% 11.7% 5.6% 6.0% 7.7% F&B 7.5% 12.7% 6.0% 6.6% 8.2% T&W 7.6% 11.1% 5.4% 5.5% 7.4% Higher impacted business LFL* growth 2020 84% 15% 18% Q1 Q2 Q3 Q4 FY 85% Group -4.4% -39.0% -9.
Slide 6: Sales evolution by market
Sales evolution by market Strong performance from high growth markets in million CHF 3,646 3,544 2,676 2,659 FY 2019 FY 2020 FY 2019 FY 2020 Mature High growth % of total sales 57% 58% 43% 42% % 2020 growth on LFL* basis 1.5% 7.4% * LFL (like-for-like) excludes the impact of currency, acquisitions a
Slide 7: Sales evolution by region
Sales evolution by region All regions contributing to the growth 2,278 2,233 in million CHF 1,768 1,630 1,602 1,641 699 674 FY FY FY FY FY FY FY FY 2019 2020 2019 2020 2019 2020 2019 2020 LATAM APAC NOAM EAME % 2020 growth on LFL* basis 17.6% 0.6% 5.7% 1.1% % 2020 growth in CHF -2.3% -1.9% 7.2% 2.1%
Slide 8: Sales performance: Fragrance & Beauty
Sales performance Fragrance & Beauty Fine Fragrance decreased 6.0% LFL* sales in CHF million • Strong impact of COVID-19 due to restricted retail and travel retail activity in major fine fragrance markets • Good growth of 4.2% in the second half of 2020, compared to 2,799 2,924 the same period in 20
Slide 9: Sales performance: Taste & Wellbeing
Sales performance Taste & Wellbeing sales Asia Pacific decreased 1.0% LFL* in CHF million • Double-digit growth in China was offset by Indonesia and India, which were strongly impacted by COVID-19 • Weaker performance in mature markets of Japan and 3,404 3,398 Oceania, also related to COVID-19 EAME
Slide 10: COVID-19: Givaudan's focus throughout the crisis
COVID-19 Givaudan’s focus throughout the crisis 1. 2. 3. Protecting and Meeting the demands of Taking care of the supporting our our customers, communities in employees, be it particularly for those which we operate on-site or those products which support working from home consumers throughout the p
Slide 11: Tom Hallam, Chief Financial Officer
Tom Hallam Chief Financial Officer
Slide 12: 2020 Full year results: Performance highlights
2020 Full year results Performance highlights • Sales of CHF 6,322 million, up 4.0% on a like-for-like* basis and 1.9% in Swiss francs • EBITDA of CHF 1,397 million compared to CHF 1,275 million in 2019, an increase of 9.6% • Reported EBITDA margin of 22.1% compared to 20.6% in 2019, with the underl
Slide 13: Exchange rate development
2020 Full year results Exchange rate development -3.5% -3.7% -5.7% -4.8% -6.7% -5.8% -8.4% -14.8% -27.8% JPY USD GBP EUR SGD BRL CNY MXN IDR FY 2020 0.88 0.94 1.21 1.07 0.68 0.18 0.14 0.04 0.64 FY 2019 0.91 0.99 1.27 1.11 0.73 0.25 0.14 0.05 0.70 2020 Full year results investor conference 29/01/2021
Slide 14: Operating performance
Operating performance Sales of CHF 6,322 million, an increase of 4.0% on a like-for-like basis* and 1.9% in Swiss francs 40.8% Gross margin 42.1%in % Gross margin of 42.1%, compared to 40.8% in 2019, as a result of continued productivity gains, improved 1,397 contribution of acquired companies, GBS
Slide 15: Operating performance: Fragrance & Beauty
Operating performance Fragrance & Beauty Sales of CHF 2,924 million, an increase of 5.4% on a like- 555 EBITDA in CHF million 677 for-like basis* and 4.5% in Swiss francs EBITDA of CHF 677 million, increased from CHF 555 2,924 million in 2019 2,799 Sales GBS costs of CHF 6 million, compared with CHF
Slide 16: Operating performance: Taste & Wellbeing
Operating performance Taste & Wellbeing Sales of CHF 3,398 million, an increase of 2.8% on a 720 EBITDA in CHF million 720 like-for-like basis* and a decrease of 0.2% in Swiss francs EBITDA of CHF 720 million, flat compared to last year 3,404 3,398 Acquisition and restructuring costs of CHF 32 milli
Slide 17: Amortisation of intangible assets
Amortisation of intangible assets Total annual amortisation charge (in million CHF, estimated) 187 188 148 133 124 121 37 40 40 40 40 40 112 110 98 93 84 81 21 21 4 17 17 6 2020 2021E 2022E 2023E 2024E 2025E Pre Quest Quest Other acquisitions Other IT Updated to include all recent acquisitions 2020
Slide 18: Net income
Net income 11.8% of sales Net Income in CHF million Income before tax of CHF 876 million compared to CHF 808 million in 2019 743 Net income of CHF 743 million, or 11.8% of sales, versus 702 CHF 702 million, or 11.3% of sales in 2019 Effective tax rate of 15%, compared to 13% in 2019, temporarily hig
Slide 19: Free cash flow: Sustained underlying performance
Free cash flow Sustained underlying performance Free cash flow Free cash flow of CHF 811 million, compared to CHF 787 in CHF million million in 2019. Free cash flow is 12.8% of sales compared to 12.7% in 2019. 811 Average Free cash flow over the 2016-2020 strategy 787 period of 12.6% Operating cash
Slide 20: Dividend per share: Increasing 3.2% over 2019
Dividend per share Increasing 3.2% over 2019 54 56 58 60 62 64* 47 50 36 19.5 20 20.6 21.5 22 17.6 18.8 811 15.4 16.3 787 720 703 662 8.1 604 6.5 7 597 594 549 512 437 390 340 273 295 289 262 203 157 145 117 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 21: Balanced debt structure
Balanced debt structure Debt maturities and average borrowing rates In April 2020 Givaudan issued two new bonds for a total of EUR 1,000 million carrying respectively a maturity of 7 years (EUR 500M) and 12 years (EUR 500M). In November 2020 Givaudan issued a Swiss franc bond of CHF 150 million with
Slide 22: Leverage ratio and Net debt to EBITDA
Leverage ratio and Net debt to EBITDA Increase related to the Ungerer acquisition Leverage ratio of 50% as at December 2020 compared to 47% in 2019. The increase is largely driven by currency impacts on the CTA in Equity and the acquisition of Ungerer in February 2020. The net debt to EBITDA as at D
Slide 23: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer
Slide 24: Strategy 2020: Responsible growth. Shared success.
Strategy 2020 Responsible growth. Shared success. Creating additional value through 16 acquisitions Growing with Delivering with Partnering for since 2014 our customers excellence shared success 4-5% 12-17% CHF 1.5 bn annualised Average organic sales growth* Average free cash flow as % of sales* Par
Slide 25: Value creation through acquisitions
Value creation through acquisitions Expanding our portfolio Local and regional customers Naturex Naturals Expressions Parfumées Spicetec drom Activ International Fragrance Oils Vika Ungerer Centroflora Nutra Naturex Albert Vieille Golden Frog Aligned with Ungerer Indena market trends and our strateg
Slide 26: Strategy 2020 Successfully Delivered
Strategy 2020 Successfully Delivered Highlights of key achievements 2016-2020 Growing with our customers Delivering with excellence Partnering for shared success High Health and Consumer Excellence in Integrated Innovators Suppliers People Communities growth well-being preferred execution solutions
Slide 27: 2021 Outlook
2021 Outlook Summary of the Key themes 2021 Outlook Focus on Operations Key Initiatives • Confident in our capabilities and the • Protecting and supporting all Givaudan • Continued integration of acquired important role that we play in the global personnel companies on to Givaudan’s operating value
Slide 28: Strategy 2025: Committed to Growth, with Purpose
Strategy 2025 Committed to Growth, with Purpose Creations Nature We create inspiring solutions We show our love for nature for happier, healthier lives through impactful actions People Communities We nurture a place where we We bring benefits to all all love to be and grow communities that work with
Slide 29: Strategy 2025: Performance commitments
Strategy 2025 Performance commitments Sales growth Free cash flow Purpose commitments 4.0 – 5.0% >12% of Sales Purpose linked targets 2021 – 2025 2021 – 2025 2021 – 2025 Average Like for Like1 Sales Growth Average FCF2 as % of sales Progress towards all published purpose targets 1. Like-for-like (LF
Slide 30: Q&A
Q&A 2020 Full year results investor conference 29/01/2021
Slide 31: Follow us on social media
Follow us on social media @givaudan 2020 Full year results investor conference 29/01/2021
Slide 32: 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