Givaudan Sa · SIX:GIVN
Givaudan Sa — H1 2020 Earnings Presentation
26 slides from Givaudan Sa's earnings presentation, 2020
Slide 1: 2020 Half year results
2020 Half year results Strong Financial Performance - 2020 guidance confirmed
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2020 Half year conference call for investors and analysts 2
Slide 3: Performance highlights
2020 Half year results Performance highlights • Sales of CHF 3,221 million, up 4.0% on a like-for-like* basis and 4.1% in Swiss francs • Excellent performance of those parts of portfolio which are not impacted by COVID-19 • Strategic focus areas, acquired businesses and high growth markets strongly
Slide 4: 2020 Half year sales performance
2020 Half year sales performance Good growth in both divisions in million CHF 3,221 1,765 1,456 Group Fragrances Flavours % 2020 growth on LFL* basis 4.0% 4.5% 3.6% % 2020 growth in CHF 4.1% 7.0% 1.9% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals 2020 Half year co
Slide 5: Sales evolution by market
Sales evolution by market Strong performance from high growth markets in million CHF 1,868 1,802 1,353 1,292 HY 2019 HY 2020 HY 2019 HY 2020 Mature High growth % of total sales 58% 58% 42% 42% % 2020 growth on LFL* basis 0.5% 9.0% * LFL (like-for-like) excludes the impact of currency, acquisitions a
Slide 6: Sales evolution by region
Sales evolution by region All regions contributing to the growth in million CHF 1,166 1,122 901 788 816 838 346 338 HY HY HY HY HY HY HY HY 2019 2020 2019 2020 2019 2020 2019 2020 LATAM APAC NA EAME % 2020 growth on LFL* basis 15.5% 3.9% 2.7% 1.7% * LFL (like-for-like) excludes the impact of currenc
Slide 7: 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 still working from consumers throughout home
Slide 8: Divisional sales performance: Fragrance Division
Divisional sales performance Fragrance Division Fine Fragrance decreased 16.4% LFL* Fragrance Division sales in CHF million • Strong start to the year prior to the onset of the COVID- 19 impact in March 1,456 • Significant reduction of activity in retail stores and travel retail across all regions r
Slide 9: Divisional sales performance: Flavour Division
Divisional sales performance Flavour Division Asia Pacific increased 2.4% LFL* Flavour Division sales 1,765 in CHF million • Double-digit growth in high growth markets of China and Thailand, whilst India was impacted by COVID-19 • In the mature markets, growth was driven by Japan, Korea and Singapor
Slide 10: Acquisition update
Acquisition update 2020 strategy in motion 2014 2015 2016 2017 2018 2019 2020 Alderys * Soliance Induchem Spicetec Activ Centroflora Nutra Cosmetics business of Biotechnology Active Beauty Active Beauty Naturals International Naturals AMSilk Integrated solutions Natural flavours Active Beauty Expres
Slide 11: Acquisition focus
Acquisition focus Outstanding portfolio aligned with market trends Naturals Local and regional Spicetec Activ International customers Vika Naturex Centroflora Nutra Expressions Parfumées Naturex drom Expressions Parfumées Fragrance Oils Albert Vieille Ungerer Golden Frog Ungerer Aligned with Indena
Slide 12: Ungerer acquisition
Ungerer acquisition Strengthening specialty ingredient capabilities and leadership in the fast growing local and regional customer segment Ungerer profile Strategic rationale & fit Achievements in H1 2020 Leading independent company in the ‒ Specialty ingredients: Natural ‒ Integration streams fully
Slide 13: Tom Hallam, Chief Financial Officer
Tom Hallam Chief Financial Officer 2020 Half year conference call for investors and analysts 13
Slide 14: Performance highlights
2020 Half year results Performance highlights • Sales of CHF 3,221 million, up 4.0% on a like-for-like* basis and 4.1% in Swiss francs • EBITDA of CHF 734 million compared to CHF 660 million in 2019, an increase of 11.3% • Reported EBITDA margin of 22.8% compared to 21.3% in 2019, with the underlyin
Slide 15: Exchange rate development
2020 Half year results Exchange rate development -2% -3% -5% -6% -6% -6% -7% -13% -24% JPY USD GBP EUR SGD BRL CNY MXN IDR HY 2020 0.89 0.96 1.22 1.07 0.69 0.20 0.14 0.04 0.66 HY 2019 0.91 1.00 1.29 1.13 0.74 0.26 0.15 0.05 0.70 2020 Half year conference call for investors and analysts 15
Slide 16: Operating performance: Group
Operating performance Group: sustained good profitability Sales of CHF 3,221 million, an increase of 4.0% on a like- for-like basis* and 4.1% in Swiss francs 41.2% Gross margin 42.2% in % Gross margin of 42.2%, compared to 41.2% in 2019, as a result of continued productivity gains and cost disciplin
Slide 17: Operating performance: Fragrance Division
Operating performance Fragrance Division Sales of CHF 1,456 million, an increase of 4.5% on a like- 270 EBITDA in CHF million 333 for-like basis* and 7.0% in Swiss francs EBITDA of CHF 333 million, increased from CHF 270 million 1,456 in 2019 1,361 Sales GBS costs of CHF 4 million, compared with CHF
Slide 18: Operating performance: Flavour Division
Operating performance Flavour Division Sales of CHF 1,765 million, an increase of 3.6% on a like- 390 EBITDA in CHF million 401 for-like basis* and 1.9% in Swiss francs EBITDA of CHF 401 million, an increase of 2.8%, driven by 1,765 continued productivity gains and cost discipline 1,733 Acquisition
Slide 19: Net income
Net income 12.8% of sales Net Income 413 in CHF million Income before tax of CHF 480 million compared to CHF 437 million in 2019 Net income of CHF 413 million, or 12.8% of sales, versus CHF 380 million, or 12.3% of sales in 2019 380 Effective tax rate of 14%, compared to 13% in 2019 Basic EPS of CHF
Slide 20: Free cash flow
Free cash flow Sustained underlying performance Free cash flow of CHF 178 million, compared to CHF 148 Free cash flow in CHF million million in 2019, an increase of 20.3%. Free cash flow is 5.5% of sales compared to 4.8% in 2019 178 Operating cash flow of CHF 359 million, compared to 148 CHF 271 mil
Slide 21: Balanced Debt Profile
Balanced Debt Profile 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) The weighted average effective interest rate for the Group is 1.43%. Debt Matu
Slide 22: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2020 Half year conference call for investors and analysts 22
Slide 23: 2020 Outlook
2020 Outlook Key themes review 2020 Outlook Focus on Operations Strategy • Continued confidence in the resilience of • Protecting and supporting all Givaudan • Strong Focus on delivering 2020 guidance our industry and our company personnel • Continued integration of acquired • Visibility remains sho
Slide 24: Partner of choice
Responsible growth. Shared success Growing with Delivering with Partnering for our customers excellence shared success Creating additional value through acquisitions 4-5% 12-17% Average organic sales growth* Average free cash flow as % of sales* Partner CHF 1.5 bn annualised revenue contribution fro
Slide 25: Q&A
Q&A Givaudan
Slide 26: 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