Givaudan SA · SIX:GIVN

Givaudan SA — H1 2006 Earnings Presentation

25 slides from Givaudan SA's earnings presentation, Aug 4, 2006

  1. Slide 1: Half Year 2006 Results

    Half Year 2006 Results Givaudan continues on its profitable growth path

  2. Slide 2: Gilles Andrier, CEO

    Givaudan® leading Sensory Innovation Gilles Andrier CEO

  3. Slide 3: Half Year Results 2006 Highlights

    Half Year Results 2006 Highlights ƒ Sales growth above market ƒ Increased gross profit and sustained margin ƒ Further improved operating performance ƒ Net profit increased by 28% to CHF 266 million resulting in a net profit margin of 18% ƒ Earnings per share improved by 30% to CHF 37.37 ƒ 3rd share

  4. Slide 4: Sales Half Year 2006

    Sales Half Year 2006 + 3.7 % Growth vs. 2005 in local currencies In Mio CHF + 7.8 % Growth vs. 2005 in CHF 1,600 1,474 + 5.4 % + 2.6 % 1,400 1,200 + 9.3 % + 6.8 % 1,000 868 800 606 600 400 200 0 Group Fragrances Flavours 4 Half Year 2006, 4 August 2006

  5. Slide 5: Continued Portfolio Rationalisation

    Continued Portfolio Rationalisation ƒ Discontinued fragrance ingredients: CHF 9 million ƒ Elimination of low margin flavour ingredients: CHF 7 million ƒ Estimated rationalisation impact for the full year 2006: • Fragrances CHF 17 million • Flavours CHF 25 million 5 Half Year 2006, 4 August 2006

  6. Slide 6: Sales Evolution by Quarter

    Sales Evolution by Quarter In Mio CHF Q1 2005 versus Q1 2004 Q2 2005 versus Q2 2004 in CHF in l.c. in CHF in l.c. Fragrances 273.1 -1.9% 0.8% 281.9 2.3% 3.2% Flavours 395.6 -6.5% -3.2% 417.4 -1.1% 0.0% Givaudan Total 668.7 -4.7% -1.6% 699.3 0.2% 1.3% Q1 2006 versus Q1 2005 Q2 2006 versus Q2 2005 in

  7. Slide 7: Sales Evolution by Region

    Sales Evolution by Region In Mio CHF LATAM Total Sales 11% HY 2005 CHF 1,368 mio EAME Asia Pacific 38% HY 2006 CHF 1,474 mio +3.7 % in l.c. 19% HY 2006 USA / Canada 134 Latin America + 9.6 % in l.c. 32% 160 265 Asia Pacific + 2.1 % in l.c. 284 436 North America + 3.9 % in l.c. 478 533 EAME + 2.9% in

  8. Slide 8: Fragrance Division: Sales, Operating Profit and EBITDA

    Fragrance Division Sales, Operating Profit and EBITDA In Mio CHF In % of Sales + 9.3 % in CHF 40% 750 + 5.4 % in l.c. 35% 606 555 30% 500 25% 21.0% 20% 18.9% 17.3% 15.0% 15% 250 + 21% + 27% 127 10% 83 105 105 5% 0 0% HY 2005 HY 2006 HY 2005 HY 2006 Sales Operating Profit EBITDA 8 Half Year 2006, 4 A

  9. Slide 9: Fragrance Division Highlights first half year 2006

    Fragrance Division Highlights first half year 2006 ƒ Double digit growth in Fine Fragrances in Europe and US ƒ Significant above market growth in Consumer Products ƒ Strong growth in Asia Pacific and Latin America ƒ Continued momentum in speciality ingredients: • Double-digit sales growth • Five spe

  10. Slide 10: Flavour Division: Sales, Operating Profit and EBITDA

    Flavour Division Sales, Operating Profit and EBITDA In Mio CHF In % of Sales + 6.8% in CHF 40% 1000 + 2.6% in l.c. 868 35% 813 30% 28.8% 750 27.6% 24.5% 24.0% 25% 20% 500 + 3% 15% + 5% 199 234 208 240 10% 250 5% 0 0% HY 2005 HY 2006 HY 2005 HY 2006 Sales Operating Profit EBITDA 10 Half Year 2006, 4

  11. Slide 11: Flavour Division Highlights first half year 2006

    Flavour Division Highlights first half year 2006 ƒ Good growth in areas of strategic focus • China, India, Vietnam, Eastern Europe, Latin America • Beverages ƒ Rebound in North America and Western Europe ƒ Slight decline in Asia Pacific due to Japan ƒ Strong growth in Confectionary ƒ New Shanghai te

  12. Slide 12: Leading Sensory Innovation

    Leading Sensory Innovation ƒ Two new captive molecules introduced: Tanaisone and Pepperwood ƒ Two novel cooling agents passed preliminary toxicological tests ƒ Further progress in receptor technology ƒ Successful use of new assays to screen bitterness blockers ƒ Health and Wellness initiative with n

  13. Slide 13: Matthias Währen, CFO

    Givaudan® leading Sensory Innovation Matthias Wahren CFO

  14. Slide 14: Exchange Rates Development

    Exchange Rates Development Average Exchange Rates Period-End Exchange Rates HY 2006 vs. HY 2005 30.06.2006 vs. 31.12.2005 6% 1% 1% 1% 0% 0% -4% -4% -7% JPY USD GBP EUR JPY USD GBP EUR HY 2006 1.10 1.27 2.27 1.56 30.06.2006 1.07 1.23 2.26 1.57 HY 2005 1.14 1.20 2.25 1.55 31.12.2005 1.11 1.32 2.26 1.5

  15. Slide 15: Business Statement

    Business Statement HY 2006 HY 2005 Change In Mio CHF in % of sales in % of sales in % Sales 1,474 100.0 1,368 100.0 8% Cost of sales (750) (50.9) (694) (50.7) 8% Gross Profit 724 49.1 674 49.3 7% Marketing, development & distribution expenses (351) (23.8) (314) (23.0) 12% Administration expenses (54

  16. Slide 16: Key Operating Ratios

    Key Operating Ratios HY 2006 HY 2005 in % of Sales Gross Profit Margin 49.1% 49.3% Operating Return On Sales (EBIT) 21.2% 20.6% EBITA 21.8% 21.3% EBITDA 24.9% 24.8% EBIDA 20.9% 20.3% Gross Additions to PPE 3.7% 3.9% 16 Half Year 2006, 4 August 2006

  17. Slide 17: Income Statement

    Income Statement HY 2006 HY 2005 Change In Mio CHF in % of sales in % of sales Sales 1,474 100.0 1,368 100.0 8% Operating profit 313 21.2 282 20.6 11% Financial income (expenses), net 12 0.8 (13) (0.9) -192% Result before taxes 325 22.0 269 19.7 21% Income taxes (59) (4.0) (61) (4.5) -3% Result afte

  18. Slide 18: Detail of Financial Income (Expenses)

    Detail of Financial Income (Expenses) HY 2006 HY 2005 In Mio CHF Interest charges (23) (31) Net currency related gain (losses) incl. derivatives (9) 13 Other derivatives net gains (losses) 25 (12) Other financial income (expenses), net 19 17 Total Financial income (expenses), net 12 (13) 18 Half Yea

  19. Slide 19: Cash Flow Statement

    Cash Flow Statement HY 2006 HY 2005 in Mio CHF Cash flows from (for) operating activities 192 168 Cash flows from (for) financing activities (293) (109) Cash flows from (for) investing activities (24) 99 Net effect of currency translation on cash (1) 11 Increase (decrease) in cash (126) 169 Cash at

  20. Slide 20: Balance Sheet

    Balance Sheet CHF 4,516 mio CHF 4,289 mio ST 17% ST 15% ST 38% 37% ST 31. Dec 2005 LT 29% 30. June 2006 LT 30% LT 62% Equity 54% LT 63% Equity 55% ^ëëÉíë iá~ÄáäáíáÉë ^ëëÉíë iá~ÄáäáíáÉë in mio CHF Assets Liabilities and Equity Current 31.12.2005 NITOP TSP Current Liabilities 30.06.2006 Assets NIRTM S

  21. Slide 21: Share Buy Back

    Share Buy Back ƒ At the Annual General Meeting of 7 April 2006, the shareholders cancelled the remaining 200’000 from the second share buy back. ƒ Under the third programme, started in May 2005 and aiming at buying back 720,000 shares, 127,800 shares were bought back until 12 July 2006. 21 Half Year

  22. Slide 22: Financial Summary

    Financial Summary ƒ Strong operating performance with 11% EBIT growth ƒ Non-operating performance positively impacted by: • Gains on marketable securities & derivatives • Lower interest charges ƒ Net profit increased by 28% ƒ EPS increased by 30% ƒ Increased operating cash flow to CHF 192 million ƒ

  23. Slide 23: Gilles Andrier, CEO

    Givaudan® leading Sensory Innovation Gilles Andrier CEO

  24. Slide 24: Outlook

    Outlook ƒ Second half year conditions • Strong sales comparables • Increasing raw material prices ƒ Focus on • High growth markets • High value adding segments • Innovation • Talent management • Total shareholder return For 2006, Givaudan is confident to grow above market and to sustain its solid 20

  25. Slide 25: Givaudan - Leading Sensory Innovation

    Givaudan® Leading Sensory Innovation

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