Givaudan Sa · SIX:GIVN
Givaudan Sa — Investor Presentation (July 2023)
59 slides from Givaudan Sa's investor presentation, July 2023
Slide 1: Investor presentation
July 2023 Investor presentation
Slide 2: What we do
What we do
Slide 3: Givaudan products drive millions of consumer decisions every day
Givaudan products drive millions of consumer decisions every day!
Slide 4: Fragrance & Beauty, Taste & Wellbeing: compounds, ingredients and integrated solutions
Fragrance & Beauty, Taste & Wellbeing, provide our customers compounds, ingredients and integrated solutions that engage consumers Savoury Beverages Nutraceuticals Oral care Fine Fragrances Personal care Snacks Dairy Sweet goods Home care Fabric care Beauty & skin care July 2023 - Investor Presentat
Slide 5: How we do it
How we do it
Slide 6: A unique business model driven by our purpose
A unique business model driven by our purpose Creating for happier, healthier lives with love for nature. • Winning business assumes: being on a core supplier list, submitting a brief, developing a solution and being selected by the customer • Our products are unique co-creations with our customers:
Slide 7: A unique business model with high barriers to entry
A unique business model with high barriers to entry Mastering complexity is a key feature of our space • A research-driven innovation process and a deep understanding of consumer preferences around the world • Sustainability goals creating significant innovation opportunities (e.g. move from non-ren
Slide 8: A naturally-hedged portfolio for consistent growth
Givaudan: A naturally-hedged portfolio (products, customers, geography,) for consistent growth Products Customers Geography 54% Taste & Wellbeing 55% North America Europe, Asia, Middle East 56% 37% Savoury Local 26% of sales 37% of sales of sales in and 35% Beverages regional 18% of employees 46% of
Slide 9: Givaudan operates in multiple industry segments
Givaudan operates in multiple industry segments Inspiring our customer’s brands, delighting consumers Flavour & Taste Functional & Nutrition Fragrance & Beauty 13.1 bn CHF 14.1 bn CHF 14.8 bn CHF Market Potential as of 2020 Market Potential as of 2020 Market Potential as of 2020 (Givaudan scope of a
Slide 10: A research-driven innovation process
A research-driven innovation process Supported by unrivalled capabilities and innovation > 126,560 Products sold per year CHF 522 mln R&D spend in 2022, 7.3% of sales 65 Creation and application centres > 4,000 Active patents July 2023 - Investor Presentation 10
Slide 11: From new ingredients to winning co-created products
A research-driven innovation process From new ingredients to winning co-created products 1 2 3 Ingredient & process discovery Solutions for consumer products Co-creation enablers/Consumer relevant Highly specialised unique ingredients Driving creative design solutions thorough Focused yet expansive
Slide 12: Business processes enabled by digital tools
Business processes enabled by digital tools Selected digital initiatives Carto - AI enabled Consumer and customer Robotic process Factory 2.0 Traceability creative design foresight automation A product creation experience: Discover new consumer behaviours Create a virtual workforce to take over Iden
Slide 13: Value creation through acquisitions
Value creation through acquisitions 19 acquisitions between 2014 - 2021 Cosmetics business of Indena Active Beauty Fragrance Oils Ungerer L&R Fragrance Speciality Ingredients Flavours & Fragrances Vika Natural flavours Golden Frog drom Naturals Fragrances Activ Induchem Active Beauty International N
Slide 14: Our Board of Directors
Effective and transparent governance Our Board of Directors Calvin Prof. Victor Michael Grieder Lilian Werner Balli Carlos Biner Chairman Bauer AC AC, CC NGC, IC NGC, IC CC, IC Ingrid Olivier Sophie Tom Deltenre Filliol Gaspermen Knutzen CC, NGC AC, IC AC, NGC IC Separation of roles in line with the
Slide 15: Our Executive Committee
Effective and transparent governance Our Executive Committee Gilles Tom Louie Maurizio Andrier Hallam D’Amico Volpi Chief Chief President President Executive Financial Taste & Fragrance & Officer Officer Wellbeing Beauty Simon Willem Anne Halle-Smith Mutsaerts Tayac Head of Global Head of Global Hea
Slide 16: Future value creation through our 2025 strategy
Future value creation through our 2025 strategy
Slide 17: Creating for happier, healthier lives with love for nature
Creating for happier, healthier lives with love for nature. Let’s imagine together Creations Nature Let’s imagine together with customers that Let’s imagine together that through our creations more people will we show our love for nature enjoy happier, healthier lives in everything we do People Comm
Slide 18: Megatrends impacting 2025 strategy
Megatrends Impacting 2025 strategy Consumer base is Living longer and more Sustainability is of high COVID-19: growing consciously concern E-commerce, self-care and localisation gain Trend importance Impact • Asia and Africa leading • Consumer behaviours • Consumers will buy • Consumers will buy the
Slide 19: 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 our People customers Communities We nurture a place We bring benefits where we all love to to all co
Slide 20: 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 21: Purpose and 2025 strategy
Purpose and 2025 strategy Encapsulate our approach to ESG
Slide 22: Purpose-linked targets
Purpose-linked targets Encapsulate our approach to ESG Creations E S G Nature E G People S G Communities E S G By 2030 Before 2030 Before 2025 By 2030 • We will double our business through • Our operations’ carbon emissions will • Everyone on our sites will have access • We will source all materials
Slide 23: History of acting sustainably with solid track record of ESG ratings
History of acting sustainably with solid track record of ESG ratings Confidence in achieving ambitious purpose targets FTSE4Good Index Series Double ‘A rating’ Awarded the EcoVadis Rated as ‘low-risk’ in 2021 Included in Ranked in the MSCI ESG AAA for climate and Gold medal, ranking us with a score
Slide 24: Creations for happier, healthier lives: doubling our business by 2030
Creations for happier, healthier lives of millions of people Doubling our business by 2030 We will impact millions of lives by working with our customers to develop creations for happier, healthier lives By 2030 Taste & Wellbeing Fragrance & Beauty We will double our business through creations Going
Slide 25: Leading food systems transformation
Leading food systems transformation Improving our existing portfolio and innovating with new products An ecosystem of experts allows us to co-create diverse food choices and plant-based food experiences that meet consumer conscious decision to adopt a plant- based diet. We estimate that through our
Slide 26: PlanetCaps: biodegradable fragrance capsules
PlanetCaps First-to-market biodegradable fragrance capsules The unique PlanetCaps™ technology will enable Givaudan to collaborate with customers in rolling out bespoke biodegradable fragrance systems. A combination of high biodegradability and renewable carbon source material, delivering long- lasti
Slide 27: Givaudan's carbon footprint
Givaudan’s carbon footprint Our journey to becoming climate positive Scope 1 Scope 2 TARGETS – Scope 3 6% 1% • Before 2050, Our supply Emissions generated chain will be climate positive by our energy supply Actions driving our Roadmap: Engage suppliers in the net-zero Scope 3 journey 93% Refine unde
Slide 28: Positive impacts on climate change: emissions
Givaudan’s positive impacts on climate change Emissions Before 2050, we will be a climate-positive Our actions business based on scope 1+2+3 emissions according to the Greenhouse Gas (GHG) protocol. • Fixing site environmental targets and assessments • Signing the UN pledge ‘Business By 2025 100% of
Slide 29: Positive impacts on climate change: water, waste and plastics
Givaudan’s positive impacts on climate change Water, waste and plastics We act as a role model in water Driving continuous improvement Before 2030, we will replace stewardship, working to protect in waste reduction and single-use plastics with water-dependent ecosystems and management with a focus o
Slide 30: Our purpose commitment to responsible sourcing
Our purpose commitment to responsible sourcing Sustainable value creation CHF 4.2bn > 225 > 12,400 57% 43% Raw material and IM&S People in global Number of different Renewable Non-renewable spend per year procurement worldwide raw materials sourced raw materials raw materials Sourcing4Good drives ou
Slide 31: Our purpose commitment to biodiversity
Our purpose commitment to biodiversity Conservation, sustainable use of biodiversity and regeneration of ecosystems A global biodiversity strategy Our approach Our achievements so far In line with our commitment to the Convention Understanding and acting on our impacts and Conservation, sustainable
Slide 32: Diversity & inclusion
A place where people love to be and grow Diversity & inclusion A diverse, inclusive organisation to best meet our business goals. Before 2025 We will be rated amongst the leading employers for inclusion globally 2022: in progress Before 2030 • We will be an even more balanced and inclusive company 2
Slide 33: Caring for employees
A place where people love to be and grow Caring for employees Caring for employee’s safety, health and mental well-being Before 2025 • We will reduce our total recordable case rate by 50% (baseline 2018) 2022: -36% • Everyone on our sites will have access to mental and physical health initiatives, t
Slide 34: All communities benefit by working with Givaudan
All communities benefit by working with Givaudan Improving people’s lives Sourcing our materials and services in a way that protects people and the environment, and positively impacting the lives of millions of people Before 2030 • 100% of materials and services will be sourced responsibly 2022: 90%
Slide 35: A strong track record of growth and value creation
A strong track record of growth and value creation
Slide 36: Key investment highlights
Key investment highlights Givaudan has a strong track record of delivering with excellence • A company inspired by its purpose • Creations critical to our customers’ success (minor cost/high impact) • A research-driven innovation process • A highly resilient / defensive business model: • Key product
Slide 37: Value creation at Givaudan
Value creation at Givaudan Sustained value creation for shareholders Share price evolution vs SMI Dividend per share in CHF 80 70 1400% 60 1200% 50 1000% 800% 40 600% 30 400% 20 200% 10 0% 0 2000 2005 2010 2015 2020 2000 2005 2010 2015 2020 Givaudan SMI 30 Billion Average annual yield of >CHF of tot
Slide 38: Dividend per share
Dividend per share Increasing 1.5% over 2021 64 66 67* 56 58 60 62 54 47 50 36 20.6 21.5 22 843 18.8 19.5 20 811 16.3 17.6 787 15.4 720 703 662 8.1 604 597 594 7 6.5 549 512 479 437 390 340 295 289 273 262 203 157 145 117 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 39: 2023 Half Year Results
2023 Half Year Results Solid business performance
Slide 40: 2023 Half year results: solid business performance
2023 Half year results Solid Business Performance • Sales of CHF 3,535 million, an increase of 2.4% on a like-for-like* basis and a decrease of 3.2% in Swiss francs • Strong sales performance in high growth markets, in Europe and in Fine Fragrances • Performance improvement initiatives are well on t
Slide 41: Half year sales performance
Half year sales performance Solid growth in challenging markets In CHF million HY 2022 HY 2023 3,652 3,535 2,006 1,863 1,646 1,672 Group Fragrance & Beauty Taste & Wellbeing -3.2% 1.6% -7.1% % 2023 growth in CHF 2.4% 6.4% -0.9% % 2023 growth on LFL* basis 6.2% 4.7% 7.6% % 2022 growth on LFL* basis *
Slide 42: Sales evolution by market
Sales evolution by market Good performance in high growth markets In CHF million HY 2022 HY 2023 2,076 1,954 1,576 1,581 Mature High growth 57% 55% 43% 45% % of total sales -2.6% 8.9% % 2023 growth on LFL* basis 5.4% 7.4% % 2022 growth on LFL* basis * Like-for-like: excludes the impact of currency,
Slide 43: Sales evolution by region
Sales evolution by region Strong growth in LATAM & EAME In CHF million HY 2022 HY 2023 1,365 1,405 984 883 852 855 420 423 LATAM APAC NOAM EAME 11.1% 3.2% -10.6% 8.5% % 2023 growth on LFL* basis 9.0% 2.7% -1.5% 13.7% % 2022 growth on LFL* basis * Like-for-like: excludes the impact of currency, acqui
Slide 44: Fragrance & Beauty
Fragrance & Beauty Sales growth of 6.4% on a LFL* basis Fine Fragrance sales increased by 16.2% LFL* In CHF million • Excellent growth maintained across prestige brands, as well as with regional brands in high growth markets 1,672 +1.6% • Strong contribution of new wins 1,646 Consumer Product sales
Slide 45: Taste & Wellbeing
Taste & Wellbeing Sales growth of -0.9% on a LFL* basis In CHF million Sales by region 2022 2023 Sales Growth Sales Growth 2,006 LFL* LFL* Europe 14.0% 3.6% -7.1% South Asia, Middle East and Africa 16.9% 19.1% 1,863 North America -0.9% -11.7% Latin America 17.1% 10.5% Asia Pacific 5.1% - 5.0% Sales
Slide 46: 2022 Full Year Results
2022 Full Year Results Solid business performance in a challenging environment
Slide 47: 2022 Full year results
2022 Full year results Solid business performance in a challenging environment • Sales of CHF 7.1 billion, up 5.3% on a like-for-like* basis and 6.5% in Swiss francs • Strong contribution from high growth markets with an increase of 9.9% on a like-for-like* basis • EBITDA of CHF 1,476 million – EBIT
Slide 48: Sales performance
Sales performance Solid growth in both divisions In CHF million FY 2021 FY 2022 7,117 6,684 3,593 3,861 3,091 3,256 Group Fragrance & Beauty Taste & Wellbeing 5.3% 5.5% 5.2% % 2022 growth on LFL* basis 6.5% 5.3% 7.5% % 2022 growth in CHF 7.1% 6.6% 7.6% % 2021 growth in LFL* basis * Like-for-like: ex
Slide 49: Sales evolution by region
Sales evolution by region Strong performance in EAME and LATAM In CHF million FY 2021 FY 2022 2,626 2,449 1,824 1,881 1,688 1,772 838 723 LATAM APAC NOAM EAME 10.4% 5.2% -5.4% 11.9% % 2022 growth on LFL* basis 15.9% 5.0% 3.1% 7.2% % 2022 growth in CHF 14.4% 5.7% 4.8% 7.8% % 2021 growth on LFL* basis
Slide 50: Operating performance: Group
Operating performance Group EBITDA in CHF million Gross margin Sales of CHF 7,117 million, an increase of 5.3% on a like-for- 42.7% in % 38.8% like basis* and 6.5% in Swiss francs 1,482 EBITDA of CHF 1,476 million, compared to CHF 1,482 1,476 million in 2021 EBITDA margin of 20.7% compared to 22.2%
Slide 51: Operating performance: Fragrance & Beauty
Operating performance Fragrance & Beauty Sales in CHF million 696 EBITDA 698 Sales of CHF 3,256 million, an increase of 5.5% on a like- in CHF million for-like basis* and 5.3% in Swiss francs EBITDA of CHF 698 million, compared to CHF 696 million +5.5% 3,256 in 2021 LFL growth 3,091 Acquisition and
Slide 52: Operating performance: Taste & Wellbeing
Operating performance Taste & Wellbeing Sales in CHF million EBITDA 786 in CHF million 778 Sales of CHF 3,861 million, an increase of 5.2% on a like- for-like basis* and of 7.5% in Swiss francs +5.2% 3,861 EBITDA of CHF 778 million, compared to CHF 786 million LFL growth in 2021 3,593 Acquisition an
Slide 53: Free cash flow
Free cash flow 6.7% of sales In CHF million Free cash flow of CHF 479 million, compared to CHF 843 843 million in 2021. Free cash flow is 6.7% of sales compared to 12.6% in 2021 Operating cash flow of CHF 948 million, compared to CHF 1,288 million in 2021 479 Total net investments of CHF 289 million
Slide 54: Balanced debt structure
Balanced debt structure Debt maturities and average borrowing rates The weighted average effective interest rate for the Group is 1.74% (2021: 1.37%). Debt maturity in CHF million Average interest rates in % 2.45 % 1,050 1.74 % 1.17 % 938 766 1.63 % 475 1.72 % 492 2.57 % 373 0.63 % 307 1.51 % 0.34 %
Slide 55: For further information
For further information 2022 reporting suite
Slide 56: Where to find more information
Where to find more information Reporting suite givaudan.com/investors 2022 Integrated Annual Report (PDF and print) READ MORE • GRI Content Index • SASB Standards • TCFD Recommendations givaudan.com/sustainability 2022 Governance, Digital Integrated 2022 Sustainability Report Compensation & Financia
Slide 57: 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 handout and disclaim any liability fo
Slide 58: Follow us on social media @givaudan
Follow us on social media @givaudan
Slide 59: Slide 59