Givaudan SA · SIX:GIVN
Givaudan SA — Investor Day (April 2021)
71 slides from Givaudan SA's investor day presentation, April 2021
Slide 1: Annual investor conference 2021
Annual investor conference 2021
Slide 2: Topics for today’s conference
Topics for today’s conference 1 2 3 4 5 6 2021 First Our approach Environment Social Governance Conclusion quarter sales to ESG Reducing Diversity and Governance environmental inclusion structure Q&A Committed to footprint Caring for Compensation Growth, with Protecting the employees Purpose ecosyst
Slide 3: Conference instructions
Conference instructions Annual Investor Conference 1 2 3 Live webcast Q&A session Presentation presented by: on website If you wish to Gilles Andrier ask questions: Willem Mutsaerts Call in after the Simon Halle-Smith presentation using the dial-in details you received Press * and 1 to enter the que
Slide 4: Gilles Andrier
Gilles Andrier Chief Executive Officer 2021 First quarter sales Committed to Growth, with Purpose Our approach to ESG 4
Slide 5: 2021 First quarter sales
2021 First quarter sales Strong growth across all markets and segments 5
Slide 6: Sales performance: Strong start to the year
Sales performance Strong start to the year In CHF million Q1 2020 Q1 2021 1619 1674 874 886 745 788 Group Fragrance & Beauty Taste & Wellbeing 7.7% 9.9% 5.8% % 2021 growth on LFL* basis 3.4% 5.8% 1.3% % 2021 growth in CHF * LFL (like-for-like) excludes the impact of currency, acquisitions and dispos
Slide 7: Sales portfolio performance COVID-19 impact analysis
Sales portfolio performance COVID-19 impact analysis Lower impacted business LFL* growth 2020 & Q1 2021 Higher impact ** Lower impact ** Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Group 7.5% 11.7% 5.6% 6.0% 7.7% 9.6% 16% F&B 7.5% 12.7% 6.0% 6.6% 8.2% 10.7% T&W 7.6% 11.1% 5.4% 5.5% 7.4% 8.7% 84%
Slide 8: Sales evolution by market
Sales evolution by market Excellent performance in high growth markets In CHF million Q1 2020 Q1 2021 946 955 719 673 Mature HG 58% 57% 42% 43% % of total sales 2.8% 14.5% % 2021 growth on LFL* basis * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals 8
Slide 9: Sales evolution by region
Sales evolution by region All regions contributing to the growth In CHF million Q1 2020 Q1 2021 599 621 452 449 423 395 173 181 EAME NA LATAM APAC 4.6% 3.7% 23.3% 10.2% % 2021 growth on LFL* basis 3.7% -0.7% 5.1% 7.1% % 2021 growth in CHF * LFL (like-for-like) excludes the impact of currency, acquis
Slide 10: Fragrance & Beauty
Fragrance & Beauty Sales growth of 9.9% on a LFL basis In CHF million Fine Fragrance sales increased by 6.6% LFL • The good sales performance was driven by volume growth of existing business and new wins • Despite continued travel restrictions and partial lockdowns in different regions of the world,
Slide 11: Taste & Wellbeing
Taste & Wellbeing Sales growth of 5.8% on a LFL basis In CHF million Sales in Europe increased by 0.7% LFL • Double-digit growth was achieved in the mature markets of Germany and Sweden followed by good single-digit growth in Austria • Overall the region was still heavily impacted by the COVID-19 cr
Slide 12: 2021 Outlook
2021 Outlook Summary of key themes 2021 Outlook Focus on Operations Key Initiatives • Confident in our capabilities and the • Protecting and supporting all • Continued integration of acquired important role that we play in the global Givaudan personnel companies on to Givaudan’s value chain for food
Slide 13: Committed to Growth, with Purpose
Committed to Growth, with Purpose Purpose and 2025 Strategy for a high-performing business, and acting as a force for good 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 that all communities through our creations Creating for happier, benefit by working with more people will enjoy healthier lives G
Slide 15: Strategy 2025
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 bring benefits to all we all love to be
Slide 16: Strategy 2025 Performance ambitions
Strategy 2025 Performance ambitions SALES GROWTH FREE CASH FLOW PURPOSE AMBITIONS Purpose 4.0 – 5.0% > 12% of Sales 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 (LFL)
Slide 17: Purpose and 2025 Strategy
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Purpose and 2025 Strategy encapsulate our approach to ESG 17
Slide 18: Purpose-linked targets encapsulate our approach to ESG
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE 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
Slide 19: Creations for happier, healthier lives of millions of people
ESG APPROACH ENVIRONMENT SOCIAL GOVERNANCE 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 gre
Slide 20: History of acting sustainably with solid ESG ratings
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE 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 for climate and EcoVadis Platinum
Slide 21: Willem Mutsaerts: Environment
Willem Mutsaerts Head of Global Procurement & Sustainability Environment • Reducing environmental footprint • Protecting ecosystems 21
Slide 22: Focus on Environment
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Focus on Environment Creating positive impact on the environment by showing our love for nature 22
Slide 23: Climate positive business before 2050
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE A bold ambition and clear roadmap. Before 2050, we will become a climate positive business (scope 1, 2 and 3).” 23
Slide 24: Reducing environmental footprint
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Reducing environmental footprint • GHG emissions • Water • Waste • Plastics 24
Slide 25: Strong track record in reducing environmental footprint
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Strong track record In reducing environmental footprint Emissions Scope 1+2 – 30% Electricity Renewable sources 81% Water Efficiency – 23% Waste Efficiency – 14% 2015 2020 2015 2020 2015 2020 2015 2020 25
Slide 26: Ambitious targets for environmental leadership
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Ambitious targets For environmental leadership Emissions Electricity Water Waste Plastics Scope 1+2+3 Renewable sources Efficiency Efficiency Alternatives Before 2050 By 2025 Current target Current target Before 2030 We will be a Power 100 % Reduce water
Slide 27: Reducing environmental footprint: climate positive
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Reducing environmental footprint Becoming a climate positive business reducing scope 1,2,3 emissions 27
Slide 28: Givaudan’s carbon footprint
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Givaudan’s carbon footprint Our value chain emissions Scope 1 Scope 2 5% 2% Emissions generated Emissions generated by our operations by our energy supply Scope 3 93% Emissions generated by our supply chain About 2,000,000 tonnes GHG emissions per year 2
Slide 29: Reducing scope 1 and 2
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Reducing scope 1 and 2 Actions driving our roadmap and key enablers TARGETS ACTIONS DRIVING OUR ROADMAP KEY ENABLERS • Site environmental targets Before 2040 Drive continuous improvement • Our operations’ will be • Site assessments climate positive (scop
Slide 30: Reducing scope 3
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Reducing scope 3 Actions driving our roadmap and key enablers TARGETS ACTIONS DRIVING OUR ROADMAP KEY ENABLERS • Formulation, innovation Before 2050 Engage suppliers in the net-zero • Our supply chain will be • Supplier engagement climate positive (scope
Slide 31: Using biotechnology and innovation to reduce scope 3 emissions
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Using biotechnology and innovation To reduce scope 3 emissions BisaboLife™ Ambrofix® Nootkatone The first biotech bisabolol A sustainable, biodegradable ingredient A sustainable ingredient Creating a new biosourced and natural A biodegradable ingredient
Slide 32: We have set a bold climate ambition
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE We have set a bold climate ambition Clear agenda to reduce scope 1, 2 and 3 emissions Ou r a ch ie ve m e n t s Ou r a m bit ion s -30 % 81% Scope 1+2 Renewable 10 0 % Renewable -70 % Scope 1+2 -10 0 % Scope 1+2 2,000,000 +11% electricity electricity -20
Slide 33: Reducing water, waste and single use plastics
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Reducing environmental footprint Reducing water, waste and single use plastics 33
Slide 34: Reducing our environmental footprint
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Reducing our environmental footprint Water efficiency Waste efficiency Plastics alternatives • In 2020 we achieved 23% reduction of • More than 70% of our waste is either • Co-leading a WBCSD plastic and our water intensity (vs 2015), reused, recycled or
Slide 35: Protecting ecosystems
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Protecting ecosystems • Sourcing responsibly • Promoting biodiversity 35
Slide 36: Our commitment to responsible sourcing
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Our purpose commitment to responsible sourcing… …to source all materials and services in a way that protects people and the environment by 2030.” Ensure trust and Embark on collaborative Bring end-to-end raw compliance across our transformational project
Slide 37: Fully traceable supply chain and enhancing agricultural practices
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Fully traceable supply chain and 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 t
Slide 38: Protecting the environment: preserving biodiversity
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE 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
Slide 39: Driving sustainable solutions together: ecosystem of partners
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Driving sustainable solutions together: Our ecosystem of partners Collaboration with an ecosystem of partners to Memberships and Assessments/ support and inform our work on most material collaborations Ratings With whom we External sustainability issues
Slide 40: Simon Halle-Smith: Social and Governance
Simon Halle-Smith Head of Global Human Resources & Environment, Health and Safety Social • A place where people love to be and grow • Improving people’s lives Governance • Governance structure • Compensation 40
Slide 41: Focus on Social
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Focus on Social Caring for people and communities 41
Slide 42: Building an inclusive and equitable society
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE This year of pandemic and protest has shown just how vital it is that businesses across the globe work together and redefine their role in building an inclusive and equitable society.” 42
Slide 43: A place where people love to be and grow
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE A place where people love to be and grow Becoming a leading employer for diversity and inclusion 43
Slide 44: Ambitions: Diversity and inclusion
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Ambitions Diversity and inclusion A diverse, inclusive organisation to best meet Inclusive our business goals. talent acquisition Before 2030, we will be an even more balanced and inclusive company. Inclusive Before 2025 talent Our We will be rated among
Slide 45: Building more inclusive hiring practices
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Driving progress Building more inclusive hiring practices Our goal is to attract and find more diverse candidates • Inclusive job ads • Balanced slates for hiring and promotion • Hiring Manager Training Success stories Working with a Talent Acquisition i
Slide 46: Fostering inclusive leadership development
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Driving progress Fostering inclusive leadership development Our goal is to develop leaders, today and in the future • Evolving our Leadership Development programmes • Better Balance Approach • Managing unconscious bias at work Success stories The Better
Slide 47: A place where people love to be and grow
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE A place where people love to be and grow Caring for employee's safety, physical health and mental wellbeing 47
Slide 48: Ambitions: Caring for employees
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Ambitions Caring for employees Caring for employee’s safety, health Caring for and mental well-being our place Before 2025 We will reduce our total recordable injuries cases by 50% Caring for Before 2025 our people Our Everyone on our sites will have acc
Slide 49: Solid track record in caring for employees’ safety
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Solid track record in Caring for employees’ safety 2020 Safety performance – “Everyone Safe Home Everyday” 2 TRCR Proud about our continuous safety 1,8 1,6 LTI Rate performance progress 1,4 1,2 1 2020 safety performance progress 0,8 0,6 • 76% reduction L
Slide 50: Increasing the safety at our workplaces
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Driving progress China In Songjiang: A sound focus on the technical Increasing the safety foundation and risk management as well as at our workplaces leadership and employee engagement has resulted in a long-standing safety culture of more than 11 years
Slide 51: Mental and physical health
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Driving progress Mental and physical health Providing access to mental and physical health initiatives, tools and training for all employees By taking care of our people through all aspects of their lives, we are helping them to have the physical energy,
Slide 52: Improving people’s lives
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Improving people’s lives • Givaudan Foundation • Green teams • Employees acting as ‘force for good’ 52
Slide 53: Ambitions: Improving people’s lives
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Ambitions Improving people’s lives Givaudan All communities benefit by working community with Givaudan as a force for good Communities By 2030 where we Our We will improve the lives of millions of people in communities where we source and operate source
Slide 54: Givaudan Foundation
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Driving progress Givaudan Foundation 49 Contributing to happier, healthier lives On-going for people in communities projects in 58,000 27 Direct Givaudan Foundation mission countries beneficiaries To make a difference within the communities where Givauda
Slide 55: Givaudan Green Teams in 2020
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Driving progress Givaudan Green Teams in 2020 Living Givaudan’s Purpose • Over 500 Givaudan participants / volunteers • 32 projects submissions in 16 countries and 25 sites represented • Over 21,500 beneficiaries / impacted stakeholders • >1,6 CHF millio
Slide 56: Employees as a force for good
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Driving progress Project in Brazil • Sustainable technology to create a Employees as a force for good • colour-changing soap Encourages children to wash their hands Purpose Live! A path to innovation with social responsibility for longer Results: Enables
Slide 57: Focus on Governance
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Focus on Governance An effective and transparent governance 57
Slide 58: Governance structure
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Governance structure Stable and efficient corporate governance to ensure sustainable value creation 58
Slide 59: Board of directors
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Board of directors Calvin Prof. Dr. Grieder Ing Werner • Separation of roles in line with SWX Code of Conduct: Chairman Bauer Chairman of the Board and Chief Executive Officer Board NGC, IC CC, IC • Ultimate strategic supervision and control of the manag
Slide 60: Executive Committee
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Executive Committee Gilles Tom Andrier Hallam • Responsible for the day-to-day management of the Chief Chief Financial Company Executive Officer Officer • 7 Executive Committee members • 6 nationalities • 4-6 year average tenure Louie Maurizio Simon • Av
Slide 61: Other key governance principles
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Other key governance principles Good shareholder governance Principles of Conduct Sustainability governance framework Board of Directors Executive Committee Sustainability Engage together to Divisions Leadership define and drive the and Team (SLT) Sustai
Slide 62: Compensation principles
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Compensation principles Reflect the performance of the business and of individuals and are aligned to our strategy 62
Slide 63: Compensation principles: pay for performance
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Compensation principles Pay for performance and alignment of interests with shareholders Total compensation is composed of: • Base salary for all 16,000 employees • Cash-based Profit Sharing Plan for 11,000 non-management employees based on Group Financi
Slide 64: Performance Share Plan
APPROACH TO ESG ENVIRONMENT SOCIAL GOVERNANCE Performance Share Plan Adjustment to include also non-financial purpose-related targets Continued: Newly included: Financial targets PLAN Purpose-related targets FORMAT PSP with 3-year Creations 80% vesting time People 10% • 40% Relative sales Payout ran
Slide 65: Conclusion
Conclusion Committed to Growth, with Purpose 65
Slide 66: 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 bring benefits to all we all love to be
Slide 67: Purpose-linked targets
Purpose-linked targets A high-performing business, acting as a force for good 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 t
Slide 68: Q&A session
Q&A session Annual Investor Conference April 2021 Annual Investor Conference 1 2 3 To ask a Mute the Press * and 1 question sound on To enter the queue Call in using the your to ask a question dedicated dial-in computer or details you received when you laptop registered for the Q&A 68
Slide 69: Reporting suite
Reporting suite 2020 Integrated Annual Report AVAILABLE IN ENGLISH PDF from 29 January 2021 Print from 25 March For more information please consult our 2020 Full Year Reporting Suite on: https://integratedreport.givaudan.com Online version AVAILABLE IN ENGLISH From 29 January 2021 2020 GRI 2020 Gove
Slide 70: 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/hand-out and disclaim any
Slide 71: Thank you
Thank you Givaudan SA Pierre Bénaich, Head of Investor Relations