Givaudan Sa · SIX:GIVN
Givaudan Sa — FY2014 Earnings Presentation
25 slides from Givaudan Sa's earnings presentation, Jan 29, 2015
Slide 1: 2014 Full Year Results
2014 Full Year Results Solid performance in a challenging environment 29 January 2015
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2014 Full Year Results Presentation 29 January 2015 2
Slide 3: Financial highlights
2014 Full Year Results Financial highlights • Sales CHF 4.4 billion, up 3.7% on a like-for-like* basis • Developing markets grew 7.0%, mature markets grew 1.1%; both on a like-for-like basis • EBITDA margin improved to 23.9% in 2014 from 22.2% in 2013 • Free cash flow was 13.7% of sales, compared to
Slide 4: Sales performance: Solid performance in a difficult trading environment
2014 Full Year Results Sales performance: Solid performance in a difficult trading environment In million CHF 4,404 2,296 2,108 Group Fragrances Flavours % 2008 – 2014 CAGR 5.2% 5.5% 4.9% % 2014 growth on LFL* basis 3.7% 3.6% 3.7% % 2014 growth in CHF 0.8% 1.2% 0.4% * LFL (like-for-like) excludes th
Slide 5: FY 2008 to FY 2014 sales CAGR: In line with mid-term guidance
2014 Full Year Results FY 2008 to FY 2014 sales CAGR: In line with mid-term guidance Fragrances Flavours Fine Fragrances 2.9% Latin America 11.0% Asia Pacific 6.8% Consumer Products 6.8% North America 2.2% Fragrance Ingredients 2.5% EAME 3.6% Total Total Fragrances 5.5% Flavours 4.9% Group 5.2% * LF
Slide 6: Sales evolution by market: Solid LFL growth in all markets
2014 Full Year Results Sales evolution by market: Solid LFL growth in all markets, absolute amounts continue to be impacted by currencies In million CHF 2,404 2,400 1,965 2,004 FY2013 FY2014 FY2013 FY2014 Mature Developing % of total sales 55% 54% 45% 46% % 2008 – 2014 CAGR 1.8% 10.1% % 2014 growth
Slide 7: Sales evolution by region: Latin America continues strong momentum
2014 Full Year Results Sales evolution by region: Latin America continues strong momentum 1653 1686 In million CHF 1180 1188 958 951 578 579 FY FY FY FY FY FY FY FY 2013 2014 2013 2014 2013 2014 2013 2014 LATAM APAC NA EAME % 2014 growth on LFL* basis 11.3% 4.2% 0.6% 2.5% % 2008 – 2014 CAGR 12.7% 8.
Slide 8: Fragrance Division: Operational Performance
2014 Full Year Results Fragrance Division: Operational Performance Fine Fragrances grew 2.5% Sales and EBITDA Growth mainly driven by Latin America CHF million and Middle East Consumer Products grew 3.3% Solid growth across all customer groups +1.2% Double-digit growth in Latin America for the third
Slide 9: Flavour Division: Operational Performance
2014 Full Year Results Flavour Division: Operational Performance Health and Wellness, Developing Sales and EBITDA Markets and Targeted Customers CHF million contributed to the overall performance Asia Pacific increased 3.9% driven by China, India and the Philippines Europe, Africa and Middle East gr
Slide 10: Matthias Währen, Chief Financial Officer
Matthias Währen Chief Financial Officer 2014 Full Year Results Presentation 29 January 2015 10
Slide 11: Highlights
2014 Full Year Results Highlights • Sales CHF 4.4 billion, up 3.7% on a like-for-like basis • EBITDA increased by 8.5% to CHF 1,053 million • EBITDA margin improved to 23.9%, including a one-off gain of CHF 42 million • Net income of CHF 563 million, up 14.9% year on year • Working capital increased
Slide 12: Exchange rate development: Results largely unaffected by currencies
2014 Full Year Results Exchange rate development: Results largely unaffected by currencies, despite some significant individual currency movements versus Swiss francs 4% 0% 0% -1% -2% -3% -10% -9% -14% JPY USD GBP EUR SGD BRL CNY MXN IDR FY 2014 0.86 0.92 1.51 1.21 0.72 0.39 0.15 0.07 0.77 FY 2013 0
Slide 13: Operating performance: Consistent improvement
2014 Full Year Results Operating performance: Consistent improvement Sales of CHF 4,404 million (2013: CHF 4,369 million) Gross 44.7% 46.0% margin Gross margin of 46.0%, up from 44.7%, driven by solid sales volumes, lower operational costs in Flavours and supply 1,053 chain efficiencies EBITDA of CH
Slide 14: Financing costs and other financial expenses
2014 Full Year Results Financing costs and other financial expenses Financing costs Other financial expenses (net) (in CHF million) (in CHF million) 85 63 28 20 FY 2013 FY 2014 FY 2013 FY 2014 Financing costs down in 2014, following re-financing over Other financial income and expenses declining, de
Slide 15: Net income: increasing by 15% as a result of continued strong operating performance
2014 Full Year Results Net income: increasing by 15% as a result of continued strong operating performance Income before tax of CHF 677 million, up from CHF 580 million in 2013, driven by: • Significantly improved EBITDA Net income In CHF million • Lower financial expenses 563 Effective tax rate of
Slide 16: Free cash flow: strong underlying performance
2014 Full Year Results Free cash flow: strong underlying performance • Underlying EBITDA, excluding the one-off gain from the sale of land (CHF 42 million), up by 4.2% • Working capital as a % of sales temporarily up to 25.8% of sales, compared to 22.6% of sales at December 2013 • Net CAPEX and Inta
Slide 17: Conservative debt profile: re-financing on a continuous basis
2014 Full Year Results Conservative debt profile: re-financing on a continuous basis to benefit from attractive rates March 2014: Entered into a CHF 100 million 1.00% 6.5 year public bond and a CHF 150 million 1.75% 10 year public bond, the proceeds of which were used to reimburse a CHF 300 million
Slide 18: Leverage ratio: Continuing to de-leverage on a yearly basis
2014 Full Year Results Leverage ratio: Continuing to de-leverage on a yearly basis Leverage ratio of 17% as at December 2014 as a result of solid cash flow generation Intention to maintain a medium term leverage ratio target below 25% Company will exclude from equity definition any impact arising fr
Slide 19: Dividend per share: Increasing 6.4% YoY
2014 Full Year Results Dividend per share: Increasing 6.4% YoY Free cash flow of CHF 5.2 billion generated over the past 15 years CHF 2,114 million of cash flow returned to shareholders as dividends* 47 50* and CHF 504 million (net) through share buy-backs 36 20 20.6 21.5 22 18.8 19.5 16.3 17.6 15.4
Slide 20: Amortisation of intangible assets
2014 Full Year Results Amortisation of intangible assets • Pre Quest amortisation Total annual amortisation charge of intangible assets of (in CHF millions, estimated) approx. CHF 17 million p.a. • Quest+ intangible assets (exc. Goodwill) 155 160 180 158 103 91 amounts to CHF 1,225 million, updated
Slide 21: Financial summary
2014 Full Year Results Financial summary • Sales of CHF 4.4 billion, an increase of 3.7% on a like-for-like basis, briefs pipeline and win rate remain strong • Operating leverage and strong cost focus driving improved EBITDA margin • Net income of CHF 563 million, up 14.9% versus 2013 • Cash flow re
Slide 22: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2014 Full Year Results Presentation 29 January 2015 22
Slide 23: On track to deliver on our ambitious mid-term guidance
2014 Full Year Results On track to deliver on our ambitious mid-term guidance 4.5 to 5.5% Best-in-class 14-16% Above 60% organic sales growth EBITDA free cash flow as % free cash flow return per annum2 of sales in 2015 to shareholders1 Driven by a five-pillar strategy Developing markets Research and
Slide 24: Q&A
Q&A 2014 Full Year Results Presentation 29 January 2015 24
Slide 25: 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