Givaudan Sa · SIX:GIVN

Givaudan Sa — FY2023 Earnings Presentation

31 slides from Givaudan Sa's earnings presentation, Jan 25, 2024

  1. Slide 1: 2023 Full year results

    25 January 2024 2023 Full year results Strong financial performance I Record free cash flow I 2025 Guidance on track

  2. Slide 2: Performance highlights

    Performance highlights Gilles Andrier Chief Executive Officer 2

  3. Slide 3: 2023 full year results: strong financial performance and record free cash flow

    2023 full year results Strong financial performance and record free cash flow • Sales of CHF 6.9 billion, up 4.1% on a like-for-like* basis and a decrease of 2.8% in Swiss francs • Strong performance in high growth markets with 10.0% growth on a like-for-like* basis • EBITDA of CHF 1,473 million ver

  4. Slide 4: Sales performance: strong growth in Fragrance & Beauty

    Sales performance Strong growth in Fragrance & Beauty In CHF million 7,117 6,915 3,861 3,603 3,256 3,312 Group Fragrance & Beauty Taste & Wellbeing 4.1% 7.6% 1.1% % 2023 growth on LFL* basis -2.8% 1.7% -6.7% % 2023 growth in CHF 5.3% 5.5% 5.2% % 2022 growth in LFL* basis * Like-for-like: excludes th

  5. Slide 5: Sales evolution by market

    Sales evolution by market Excellent performance in high growth markets In CHF million 3,961 3,764 3,156 3,151 Mature High growth 56% 54% 44% 46% % of total sales -0.6% 10.0% % 2023 growth on LFL* basis 1.9% 9.9% % 2022 growth on LFL* basis * Like-for-like: excludes the impact of currency, acquisitio

  6. Slide 6: Sales evolution by region

    Sales evolution by region Sustained performance in LATAM and EAME In CHF million 2,626 2,717 1,881 1,772 1,698 1,653 838 847 LATAM APAC NOAM EAME 15.1% 3.9% -6.8% 8.4% % 2023 growth on LFL* basis 1.1% -4.1% -12.1% 3.4% % 2023 growth in CHF 10.4% 5.2% -5.4% 11.9% % 2022 growth on LFL* basis * Like-fo

  7. Slide 7: Fragrance & Beauty: sales growth of 7.6% on a LFL basis

    Fragrance & Beauty Sales growth of 7.6% on a LFL basis In CHF million Fine Fragrance sales increased by 14.0% LFL • Continuing excellent performance with sustained high levels of new +1.7% 3,312 business 3,256 Consumer Product sales increased by 7.1% LFL • Acceleration of the volume growth of our Co

  8. Slide 8: Taste & Wellbeing: sales growth of 1.1% on a LFL basis

    Taste & Wellbeing Sales growth of 1.1% on a LFL basis In CHF million Sales by region 2022 2023 Sales Growth Sales Growth 3,861 LFL LFL -6.7% Europe 11.1% 3.0% South Asia, Middle East and Africa 17.6% 13.2% 3,603 North America -6.4% -7.5% Latin America 16.7% 16.8% Asia Pacific 5.3% -2.6% Total 5.2% 1

  9. Slide 9: Key innovations addressing customer needs and consumer trends

    Key innovations addressing customer needs and consumer trends 2023 highlights Thimus PrimalHyal™ Hydra[+] An agreement with neuroscience company Thimus adds to We expand the boundaries of skin hydration. Our new our digital capabilities with their TBox, a headset that cationic hyaluronic acid (HA),

  10. Slide 10: Givaudan leading the way in decarbonisation roadmap

    Givaudan leading the way in decarbonisation roadmap On track towards our climate ambitions 2023 Full year results IR presentation 10

  11. Slide 11: Operating performance

    Operating performance Tom Hallam Chief Financial Officer 11

  12. Slide 12: Operating performance highlights

    2023 Full year results Operating performance highlights • Sales of CHF 6,915 million, up 4.1% on a like-for-like* basis and a decrease of 2.8% in Swiss francs • EBITDA of CHF 1,473 million compared to CHF 1,476 million in 2022 • Reported EBITDA margin of 21.3% compared to 20.7% in 2022, with the com

  13. Slide 13: Exchange rate development

    Exchange rate development Strengthening Swiss Franc against most currencies 7% -3% -3% -3% -5% -6% -8% -10% -12% JPY USD GBP EUR SGD BRL CNY MXN IDR FY 2023 0.64 0.90 1.12 0.97 0.67 0.18 12.71 5.08 0.59 FY 2022 0.73 0.95 1.18 1.00 0.69 0.19 14.17 4.75 0.64 Units 100 1 1 1 1 1 100 100 10,000 2023 Ful

  14. Slide 14: Operating performance: Group

    Operating performance Group EBITDA in CHF million Gross margin Sales of CHF 6,915 million, an increase of 4.1% on a like-for- 38.8% in % 41.2% like basis* and a decrease of 2.8% in Swiss francs EBITDA of CHF 1,473 million, compared to CHF 1,476 1,476 1,473 million in 2022. EBITDA measured in local c

  15. Slide 15: Operating performance: Fragrance & Beauty

    Operating performance Fragrance & Beauty Sales in CHF million 698 EBITDA 769 Sales of CHF 3,312 million, an increase of 7.6% on a like-for- in CHF million like basis* and 1.7% in Swiss francs EBITDA of CHF 769 million, compared to CHF 698 million +7.6% in 2022 3,312 3,256 LFL growth Acquisitions, re

  16. Slide 16: Operating performance: Taste & Wellbeing

    Operating performance Taste & Wellbeing Sales in CHF million EBITDA 778 in CHF million 704 Sales of CHF 3,603 million, an increase of 1.1% on a like-for- like basis* and a decrease of 6.7% in Swiss francs 3,861 +1.1% EBITDA of CHF 704 million, compared to CHF 778 million LFL growth in 2022 3,603 Acq

  17. Slide 17: Net income: 12.9% of sales

    Net income 12.9% of sales In CHF million Income before tax of CHF 989 million compared to CHF 928 million in 2022 Net income of CHF 893 million, or 12.9% of sales, versus +4.3% 893 CHF 856 million, or 12.0% of sales in 2022. Net income 856 increased by 14.3% when measured in local currency Effective

  18. Slide 18: Free cash flow

    Free cash flow Record free cash flow of CHF 920 million or 13.3% of sales In CHF million Free cash flow of CHF 920 million, compared to CHF 479 million in 2022. Free cash flow is 13.3% of sales compared 920 to 6.7% in 2022 Operating cash flow of CHF 1,373 million, compared to CHF 948 million in 2022

  19. Slide 19: Amortisation of intangible assets

    Amortisation of intangible assets Total estimated annual amortisation charge In CHF million (updated to include all recent acquisitions) 154 143 141 136 129 129 54 40 40 40 40 40 100 103 101 96 89 89 2023 2024E 2025E 2026E 2027E 2028E Acquisitions IT 2023 Full year results IR presentation 19

  20. Slide 20: Dividend per share

    Dividend per share Increasing 1.5% over 2022, the 23rd consecutive increase 64 66 67 68* 58 60 62 54 56 47 50 36 920 21.5 22 843 19.5 20 20.6 811 17.6 18.8 787 15.4 16.3 720 703 662 8.1 604 597 594 6.5 7 549 512 479 437 390 340 295 289 273 262 203 157 145 117 2000 2001 2002 2003 2004 2005 2006 2007

  21. Slide 21: Balanced debt structure

    Balanced debt structure Debt maturities and average borrowing rates In November 2023, the Group issued a CHF 250 million straight bond with a fixed coupon of 2.375% and a maturity of 7.5 years. Simultaneously, the Group issued a EUR 500 million bond with a fixed coupon of 4.125% and a maturity of 10

  22. Slide 22: Net debt to EBITDA

    Net debt to EBITDA Strong free cash flow supports focus on deleveraging 3.7 3.4 3.5 3.2 3.1 3.1 2.9 3.0 2.9 2.9 2.5 2.2 HY 2018 FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 2023 Full year results IR presentation 22

  23. Slide 23: 2025 Strategy and outlook

    2025 Strategy and outlook Gilles Andrier Chief Executive Officer 23

  24. Slide 24: Strategy 2025: Committed to Growth, with Purpose

    Strategy 2025 Committed to Growth, with Purpose Creations Nature We create inspiring We show our love solutions for happier, for nature through healthier lives impactful actions Growing together with People our customers Communities We nurture a place We bring benefits where we all love to to all co

  25. Slide 25: 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

  26. Slide 26: 2024 Outlook: key themes review

    2024 Outlook Key themes review 2024 outlook Performance improvement programme Financial impact • Very well positioned with our • Sustained strong focus on operational • Costs of CHF 50 million expected capabilities and our 2025 strategy excellence and on review of the in 2024 • The natural hedges of

  27. Slide 27: Q&A

    Q&A Givaudan 7

  28. Slide 28: Thank you

    Thank you Claudia Pedretti Head of Investor Relations 2023 Full year results IR presentation 28

  29. Slide 29: 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

  30. Slide 30: Follow us on social media @givaudan

    Follow us on social media @givaudan

  31. Slide 31: Slide 31

Givaudan — FY2023 Earnings Presentation on 6ix