Givaudan Sa · SIX:GIVN
Givaudan Sa — Investor Presentation (January 2022)
44 slides from Givaudan Sa's investor presentation, January 2022
Slide 1: Investor presentation
Investor presentation Creating for happier, healthier lives with love for nature. Let’s imagine together.
Slide 2: What we do
What we do 2022 General Investor Relations presentation January 2022 2
Slide 3: Givaudan products drive millions of consumer decisions every day
Givaudan products drive millions of consumer decisions every day! 2022 General Investor Relations presentation January 2022 3
Slide 4: Fragrance & Beauty, Taste & Wellbeing solutions for customers
Fragrance & Beauty, Taste & Wellbeing, provide our customers compounds, ingredients and integrated solutions that engage consumers Beverages Savoury Oral care Personal care Fine Fragrances Neutraceuticals Fabric care Snacks Dairy Sweet goods Household Beauty & skin care 2022 General Investor Relatio
Slide 5: How we do it
How we do it 2022 General Investor Relations presentation January 2022 5
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: Givaudan: A naturally-hedged portfolio for consistent growth
Givaudan: A naturally-hedged portfolio (products, geography, customers) for consistent growth Savoury 37% Our customers 50% multi-national | 50% local and regional 6.7 Beverages 35% sales in CHF billion Sweet goods 16% North America Europe South Asia, Middle East 27% of sales 29% of sales 8% of sale
Slide 9: Operating in a significant addressable market
Operating in a significant addressable market Givaudan market share as of 2020 Givaudan’s expanded market space worth CHF 42bn Market potential as of 2020 + + Flavour & Taste Functional & Nutrition Fragrance & Beauty 13.1 bn CHF (Sense, Health & Nutrition) 14.8 bn CHF Market Potential as of 2020 14.
Slide 10: A research-driven innovation process
A research-driven innovation process Supported by unrivalled capabilities and innovation 69 >120,000 CHF 562 mln > 550 > 3,600 Creation and Products sold R&D spend in 2021, Employees in Active application per year 8.4% of sales Science & patents Centres Technology Innovation initiatives and prioriti
Slide 11: Business processes enabled by digital tools
Business processes enabled by digital tools Selected digital initiatives Carto - AI enabled Consumer and Robotic process Factory 2.0 Traceability creative design customer foresight automation A product creation experience: Discover new consumer Create a virtual workforce to Identify how technology c
Slide 12: Value creation through acquisitions
Value creation through acquisitions Cosmetics business of Indena Active Beauty Our strategy in motion Ungerer Speciality Ingredients Flavours & Fragrances Fragrance Oils L&R Fragrance drom Fragrances Vika Natural flavours Golden Frog Naturals Activ Induchem Cosmetics business of AMSilk Active Beauty
Slide 13: Future value creation through our 2025 strategy
Future value creation Through our 2025 strategy 2022 General Investor Relations presentation January 2022 13
Slide 14: Givaudan's purpose
Givaudan’s purpose Driving sustainable performance, and acting as a force for good Creations Communities Let’s imagine together Let’s imagine together with customers that Creating for happier, that all communities through our creations benefit by working with more people will enjoy healthier lives G
Slide 15: Megatrends impacting 2025 strategy
Megatrends Impacting 2025 strategy Consumer base is Living longer and more Sustainability is of COVID-19: growing consciously high concern E-commerce, self-care and localisation gain Trend importance Impact • Asia and Africa • Consumers are • Consumers will buy • Consumers will buy leading the way •
Slide 16: 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 GROWING through impactful actions TOGETHER WITH OUR CUSTOMERS People Communities We nurture a place where we We bring benefits to all all love to be
Slide 17: 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 18: Leveraging the full portfolio to reach growth ambitions in Taste & Wellbeing
Leveraging the full portfolio to reach our growth ambitions in Taste & Wellbeing Flavour and taste Health, wellbeing and nutrition Strengthen our core Build market leadership Naturals space Flavour and taste Natural functional ingredients Naturals Colouring Protein Preservatives Texturants Natural n
Slide 19: New and superior product offering in Fragrance & Beauty
New and superior product offering in Fragrance & Beauty Biotechnology Beauty Leverage our capabilities Further expand our and acquisitions for our offering in Active Beauty ingredients Naturals Delivery systems Provide our customers with Provide the next the most innovative and generation of bio-cap
Slide 20: Purpose and 2025 strategy
Purpose and 2025 strategy Encapsulate our approach to ESG 2022 General Investor Relations presentation January 2022 20
Slide 21: Purpose-linked targets
Purpose-linked targets Encapsulate our approach to ESG Creations Nature People Communities E S G E G S G E S G By 2030 Before 2030 Before 2025 By 2030 • We will double our business • Our operations’ carbon emissions • Everyone on our sites will • We will source all materials through creations that w
Slide 22: 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 Rated as ‘low-risk’ in Included in Ranked in the MSCI ESG for climate and EcoVadis Gold 2021 with a score of SXI Swiss top 2% in
Slide 23: Creations for happier, healthier lives of millions of people
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 Taste & Wellbeing Fragrance & Beauty Going beyond great taste to create food Craftsmanship, crea
Slide 24: Sustainable value creation: Having a positive impact on nature
Sustainable value creation Having a positive impact on nature Emissions Electricity Water Waste Plastics Scope 1+2+3 Renewable sources Efficiency Efficiency Alternatives Before 2050 By 2025 By 2030 Current target Before 2030 Targets We will be a Power 100 % Improve water Reduce waste by single- 25 4
Slide 25: Givaudan's carbon footprint
Givaudan’s carbon footprint Our value chain emissions Scope 1 Scope 2 TARGETS – Scope 3 5% 2% • Before 2050, Our supply Emissions generated Emissions generated chain will be climate positive by our operations by our energy supply Actions driving our Roadmap: Scope 3 Engage suppliers in the net- zero
Slide 26: Sustainable value creation: Procurement practices
Sustainable value creation Procurement practices bringing benefits to all involved CHF 2.7 bn >225 >11,000 57% 43% Raw material / consumable People in global procurement Number of different Renewable Non-renewable spend per year worldwide raw materials sourced raw materials raw materials Sourcing4Go
Slide 27: Protecting the environment: Preserving the biodiversity
Protecting the environment Preserving the biodiversity Supporting the conservation Sustainable use of natural resources Commitment to forest conservation of diversity of species through best practices • Collaborating with the University of • Devil’s Claw sustainable wild collect • Received the Conse
Slide 28: Fully traceable supply chain
Fully traceable supply chain Enhancing agricultural practices Contributing to Positive environmental impacts • Soil health preservation • Biodiversity conservation • Increased carbon sequestration in the soil Full traceability of Guarana seeds from the field to the final extract Improved incomes for
Slide 29: A place where people love to be and grow: Diversity and inclusion
A place where people love to be and grow Diversity and inclusion Inclusive A diverse, inclusive organisation to best meet talent our business goals. acquisition Before 2030, we will be an even more balanced and inclusive company Inclusive talent Our > Before 2025 We will be rated amongst the leading
Slide 30: A place where people love to be and grow: Caring for employees
A place where people love to be and grow Caring for employees Caring for Caring for employee’s safety, health our place and mental well-being Caring for our people Our > Before 2025 We will reduce our total recordable injury rate focus by 50% areas 2021: -22% Before 2025 Everyone on our sites will h
Slide 31: A strong track record of growth and value creation
A strong track record of growth and value creation Value creation history at Givaudan 2022 General Investor Relations presentation January 2022 31
Slide 32: Key investment highlights
Key investment highlights Givaudan has a strong track record of delivering with excellence • A company inspired by its purpose, engaged in the B Corp certification and part of the B Builders Movement • A highly resilient / defensive business model: • Key products that are the most important part of
Slide 33: Value creation at Givaudan: Sustained value creation for shareholders
Value creation at Givaudan Sustained value creation for shareholders 70 Share price evolution vs SMI Dividend per share in CHF 60 1400% 1200% 50 1000% 40 800% 30 600% 20 400% 200% 10 0% 0 2000 2005 2010 2015 2020 2000 2005 2010 2015 2020 Givaudan SMI 40 Billion Average annual yield of >CHF of Total
Slide 34: Value creation at Givaudan: Dividend per share
Value creation at Givaudan Dividend per share, increasing 3.1% over 2020 * Subject to approval of shareholders at the AGM in March 2022 60 62 64 66* 54 56 58 47 50 36 20 20.6 21.5 22 17.6 18.8 19.5 843 811 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 14
Slide 35: 2021 Full Year Results
2021 Full Year Results Strong start to the 2025 strategic cycle
Slide 36: 2021 Full year results: Performance highlights
2021 Full year results Performance highlights • Sales of CHF 6.7 billion, up 7.1% on a like-for-like* basis and 5.7% in Swiss francs • All 2025 strategic focus areas on track and contributing to the results • EBITDA of CHF 1,482 million, an increase of 6.0% – EBITDA margin of 22.2% compared to 22.1%
Slide 37: Sales performance
Sales performance Strong growth in both divisions In CHF million FY 2020 FY 2021 6,684 6,322 3,398 3,593 2,924 3,091 Group Fragrance & Beauty Taste & Wellbeing 7.1% 6.6% 7.6% % 2021 growth on LFL* basis 5.7% 5.8% 5.7% % 2021 growth in CHF * Like-for-like: excludes the impact of currency, acquisition
Slide 38: Sales evolution by region
Sales evolution by region All regions contributing to the growth In CHF million FY 2020 FY 2021 2,449 2,278 1,768 1,824 1,602 1,688 674 723 LATAM APAC NOAM EAME 14.4% 5.7% 4.8% 7.8% % 2021 growth on LFL* basis 7.3% 5.4% 3.2% 7.5% % 2021 growth in CHF * Like-for-like: excludes the impact of currency,
Slide 39: Operating performance: Group
Operating performance Group EBITDA in CHF million Gross margin 42.1% in % 42.7% Sales of CHF 6,684 million, an increase of 7.1% on a like-for-like basis* and 5.7% in Swiss francs 1,482 EBITDA of CHF 1,482 million, increased from CHF 1,397 million in 2020 EBITDA margin of 22.2% compared to 22.1% in 2
Slide 40: Operating performance: Fragrance & Beauty
Operating performance Fragrance & Beauty Sales in CHF million Sales of CHF 3,091 million, an increase of 6.6% on a like-for-like 677 EBITDA 696 basis* and 5.8% in Swiss francs in CHF million 3,091 EBITDA of CHF 696 million, increased from CHF 677 million in 2020 The increase was mainly driven by hig
Slide 41: Operating performance: Taste & Wellbeing
Operating performance Taste & Wellbeing Sales in CHF million EBITDA Sales of CHF 3,593 million, an increase of 7.6% on a like-for-like 720 in CHF million 786 basis* and of 5.7% in Swiss francs 3,593 EBITDA of CHF 786 million, increased from CHF 720 million in 2020 Acquisition and restructuring costs
Slide 42: Free cash flow
Free cash flow Sustained underlying performance In CHF million Free cash flow of CHF 843 million, compared to CHF 811 million in 2020. Free cash flow is 12.6% of sales compared to 12.8% in 2020 843 Operating cash flow of CHF 1,288 million, compared to CHF 1,189 million in 2020 +3.9% Total net invest
Slide 43: 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 44: Follow us on social media
Follow us on social media @givaudan Investor relations contact: Pierre Bénaich Head of Investor and Media Relations T +41 22 780 9053 E givaudan.investors@givaudan.com 2022 General Investor Relations presentation January 2022 44