Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Firmenich International — FY2021 Earnings Presentation
30 slides from Dsm-firmenich's earnings presentation, Aug 6, 2021
Slide 1: FY 2021 results presentation
FY 2021 results presentation 6 August 2021
Slide 2: Disclaimer
Firmenich FY 2021 results presentation 2 DISCLAIMER This presentation is provided for information purposes only advice, nor as a recommendation or an offer by Firmenich expressed in it are subject to change without notice. None of and on the basis of the acceptance of this disclaimer. The Internatio
Slide 3: Your presenters
Firmenich FY 2021 results presentation 3 Your presenters CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Gilbert Ghostine Benoit Fouilland 7 years at Firmenich. Joined Firmenich 1 September 2020. Previously 21 years at Diageo most Previously at Criteo, SAP, Business recently leading APAC. Objects an
Slide 4: Agenda
Firmenich FY 2021 results presentation 4 Agenda 01 03 FY 2021 IN REVIEW Q&A 02 04 FINANCIAL REVIEW APPENDIX
Slide 5: FY 2021 in review
01 FY 2021 IN REVIEW CHIEF EXECUTIVE OFFICER Gilbert Ghostine Firmenich FY 2021 results presentation 5
Slide 6: At a glance
Firmenich FY 2021 results presentation 6 At a glance FY21: SOLID ORGANIC GROWTH AND FY21: ACCELERATING MOMENTUM IN H2 FY22: A YEAR OF GROWTH, LEADERSHIP, AND STRONG CASH GENERATION EXCELLENCE IN EXECUTION ▪ Revenue +4.7% ▪ P&I: Fine Fragrance rebound and strong ▪ Gain value share ▪ Double-digit grow
Slide 7: FY 2021: Solid organic revenue growth across our business
Firmenich FY 2021 results presentation 7 FY 2021: Solid organic revenue growth across our business GROWTH ACROSS DIVISIONS & SEGMENTS: GROWTH IN KEY GEOGRAPHIES: GROWTH IN KEY INITIATIVES: Taste & Beyond North America Sugar Reduction +5% +11% +25% Fine Fragrance China North America Perfumery Mid Mar
Slide 8: H2 2021: Accelerating momentum, although challenges remain
Firmenich FY 2021 results presentation 8 H2 2021: Accelerating momentum, although challenges remain GROWTH ACROSS DIVISIONS & SEGMENTS: Taste & Beyond Fine Fragrance Ingredients +7% +39% +22% GROWTH IN KEY GEOGRAPHIES: North America India +10% +23% China Europe +14% +9% CHALLENGES Consumer Fragrance
Slide 9: DRT: Integration continues to progress, with performance step-up in H2
Firmenich FY 2021 results presentation 9 DRT: Integration continues to progress, with performance step-up in H2 TRANSFORMATIVE ACQUISITION CONTINUED PROGRESS ON INTEGRATION MATERIAL IMPACT OF PANDEMIC, IMPROVING PERFORMANCE IN H2 vs H1 ▪ New leadership and organization Revenue +45% in H2 vs. H1 Larg
Slide 10: We have continued investing for the future
Firmenich FY 2021 results presentation 10 We have continued investing for the future LEADERSHIP IN NATURALS PROPRIETARY TECHNOLOGY & INNOVATION M&A AND PARTNERSHIPS ▪ Investing in high-growth segments ▪ Naturals Platform: Flavorful Ingredients, – Malodor control ▪ Increased stake in MG International
Slide 11: We continue to strengthen our Global Responsible Business leadership
Firmenich FY 2021 results presentation 11 We continue to strengthen our Global Responsible Business leadership INDUSTRY-LEADING ESG RATINGS TACKLING CLIMATE CHANGE & EMBRACING NATURE ADVANCING SOCIAL IMPACT ESG Risk Rating Score: 8.6 Top 1% of 14,000+ companies; Rated 1st in 1 of only 2 companies wo
Slide 12: Priorities FY22
Firmenich FY 2021 results presentation 12 Priorities FY22 ACCELERATE PROFITABLE ORGANIC GROWTH DELIVER BREAKTHROUGH INNOVATION EXECUTE WITH EXCELLENCE CONSOLIDATE LEADERSHIP IN NATURAL, SUSTAINABLE & RENEWABLE PRODUCTS
Slide 13: Financial review
02 FINANCIAL REVIEW CHIEF FINANCIAL OFFICER Benoit Fouilland Firmenich FY 2021 results presentation 13
Slide 14: Delivered mid-single digit organic revenue growth, with acquisitions contributing additional 12 ppts
Firmenich FY 2021 results presentation 14 Delivered mid-single digit organic revenue growth, with acquisitions contributing additional 12 ppts GROUP REVENUE In CHF m +10.2% Strong topline performance despite ongoing crisis +12.1% Significant contribution from -6.6% acquisitions (CHF 470m) +4.7% Mate
Slide 15: Solid rebound in key geographies, despite ongoing challenges
Firmenich FY 2021 results presentation 15 Solid rebound in key geographies, despite ongoing challenges Europe -0.7% North & East Asia North America +9.7% +11.3% China: +14.4% ORGANIC GROUP REVENUE India, Middle East & Africa GROWTH AT CONSTANT CURRENCY, % +9.4% India: +17.4% Southeast Asia Latin Ame
Slide 16: Adjusted EBITDA: Margin impacted by acquisitions, FX and pandemic
Firmenich FY 2021 results presentation 16 ADJUSTED EBITDA: Margin impacted by acquisitions, FX and pandemic Negative impact of acquisitions, foreign exchange and -5.0% temporary effect of the pandemic on costs and product mix 859 816 Excluding impact of acquisitions 22.1% 19.1% and foreign exchange,
Slide 17: Perfumery & Ingredients: Strong rebound in Fine Fragrance, growth in Ingredients
Firmenich FY 2021 results presentation 17 PERFUMERY & INGREDIENTS: Strong rebound in Fine Fragrance, growth in Ingredients, margin impacted by acquisitions Revenue & Growth Adj. EBITDA In CHF m In CHF m and as % of revenue +16.5% +3.3% +19.1% -7.0% +4.4% 2,450 +23.5% 2,855 532 550 21.7% 19.3% FY 20
Slide 18: Taste & Beyond: Robust constant currency revenue growth, margin impacted by FX
Firmenich FY 2021 results presentation 18 TASTE & BEYOND: Robust constant currency revenue growth, margin impacted by FX and effect of pandemic Revenue & Growth Adj. EBITDA In CHF m In CHF m and as % of revenue -0.7% +5.2% -18.5% 327 266 1,428 -5.9% 1,417 22.9% 18.8% FY 20 Organic FX FY 21 at Consta
Slide 19: Free cash flow: Strong cash conversion ratio through tight working capital management
Firmenich FY 2021 results presentation 19 FREE CASH FLOW: Strong cash conversion ratio through tight working capital management and favorable cash impact of exceptional items In CHF m Increase in depreciations linked to acquisitions -10 -136 306 Tight working capital +12.5% management 533 -224 42 51
Slide 20: Leverage & financial policy: Committed to strong investment-grade credit rating
Firmenich FY 2021 results presentation 20 LEVERAGE & FINANCIAL POLICY: Committed to strong investment-grade credit rating ADJUSTED LEVERAGE (S&P METHODOLOGY) MID-TO-LONG TERM FINANCIAL POLICY Leverage (in CHFm) Aim to maintain a conservative capital structure Bond program 2 934 Leverage commensurate
Slide 21: Q&A
Firmenich FY 2021 results presentation 21 03 Q&A
Slide 22: Appendix
Firmenich FY 2021 results presentation 22 04 APPENDIX
Slide 23: Alternative performance measurements
Firmenich FY 2021 results presentation 23 Alternative performance measurements GROWTH AT CONSTANT CURRENCY (CCY) GROWTH ON AN ORGANIC BASIS (ORGANIC) Growth at Constant Currency is used by our management and Board of Growth on an Organic Basis is used by our management and Board of Directors to eval
Slide 24: Alternative performance measurements (cont.)
Firmenich FY 2021 results presentation 24 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
Slide 25: Alternative performance measurements (cont.)
Firmenich FY 2021 results presentation 25 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 year e
Slide 26: Alternative performance measurements (cont.)
Firmenich FY 2021 results presentation 26 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 identi
Slide 27: Alternative performance measurements (cont.)
Firmenich FY 2021 results presentation 27 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
Slide 28: Alternative performance measurements (cont.)
Firmenich FY 2021 results presentation 28 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 s
Slide 29: Debt profile
Firmenich FY 2021 results presentation 29 DEBT PROFILE (Maturities, interest rates) MATURITY PROFILE OF FIRMENICH FUNDING In CHF m 900 823 823 823 KEY: 800 750 700 RCF (undrawn) 600 Bank 500 475 CHF bond 400 300 Hybrid bond 200 EUR bond 91 100 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Slide 30: Thank you
@ Tiemenich for good , naturally Thank you
Firmenich International — FY2021 Earnings Presentation on 6ix