Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Firmenich International — FY2022 Earnings Presentation
30 slides from Dsm-firmenich's earnings presentation, Aug 5, 2022
Slide 1: Full Year 2022 results presentation
Full Year 2022 results presentation 05 AUGUST 2022
Slide 2: Disclaimer
Disclaimer ▪ This presentation is provided for information purposes provisions and contingent liabilities; tax and regulatory information may change materially. Firmenich only and on the basis of the acceptance of this developments. Forward-looking statements can be International SA is under no obli
Slide 3: Your presenters
Your presenters CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Gilbert Ghostine Benoit Fouilland Firmenich FY 2022 results presentation • 3
Slide 4: Agenda
Agenda 01 FY 2022 IN REVIEW 03 02 Q&A FINANCIAL REVIEW 04 APPENDIX Firmenich FY 2022 results presentation • 4
Slide 5: FY 2022 in review
01 FY 2022 in review CHIEF EXECUTIVE OFFICER Gilbert Ghostine
Slide 6: At a glance
At a glance RECORD RESULTS DESPITE CHALLENGING DEMONSTRATING LEADERSHIP AND MACRO ENVIRONMENT EXCELLENCE IN EXECUTION ▪ Winning with the winners and gaining market +11% +11% 52% share Revenue Adj. Conversion ▪ Double digit Adjusted EBITDA growth despite growth EBITDA ratio inflationary environment a
Slide 7: Record organic revenue growth, with double-digit Adj. EBITDA growth
Record organic revenue growth, with double-digit Adj. EBITDA growth RECORD REVENUE GROWTH REVENUE GROWTH ACROSS DOUBLE-DIGIT ADJ. ACROSS THE BUSINESS REGIONS & KEY GEOGRAPHIES EBITDA GROWTH Taste & Fine Europe India Adj. Beyond Fragrance EBITDA +11% +33% +19% +13% +11% Consumer China North Adj. Frag
Slide 8: Innovation driving revenue growth
Innovation driving revenue growth REVENUE GROWTH IN KEY INITIATIVES CONTINUED LEADERSHIP IN INNOVATION Sugar Plant- reduction based proteins New ingredients: Accelerating the Consumer 100% natural Muguet Diet Transformation, with +20% +114% Firgood™ and biodegradable natural Lemon & Plant-based Mugu
Slide 9: Continued investment in high growth markets
Continued investment in high growth markets CHINA / TASTE CHINA / FINE FRAGRANCE DUBAI Move to majority ownership New strategic partnership State-of-the-art creation & of ARTSCI with HARMAY China development center Firmenich FY 2022 results presentation • 9
Slide 10: Protecting customers' supply security, while preserving cash generation and profitability
Protecting customers’ supply security, while preserving cash generation and profitability CHALLENGING EXTERNAL ENVIRONMENT, PROTECTING CUSTOMER PROTECTING WITH PRESSURE INCREASING IN H2 SUPPLY & CASH GENERATION PROFITABILITY ▪ Higher safety ▪ Working with RAW MATERIALS SUPPLY CHAIN inventories custo
Slide 11: Further raising the bar in ESG
Further raising the bar in ESG EMBEDDING ESG INDUSTRY LEADING RECOGNITION AT BOARD LEVEL Established Board Top 50 of nearly 1 of only 2 Top 1% of 90,000+ 1 of only 2 Governance & 15,000 companies companies companies companies Sustainability worldwide and worldwide to be worldwide worldwide, Committe
Slide 12: Priorities for FY 23
Priorities for FY 23 01 02 03 04 PROFITABLE OFFSET LEADING IN STRONG CASH ORGANIC INFLATION BREAKTHROUGH GENERATION GROWTH AND THROUGH INNOVATION WHILE MARKET SHARE PRICING TO PROTECTING GAINS PRESERVE CUSTOMER PROFITABILITY SERVICE Firmenich FY 2022 results presentation • 12
Slide 13: Financial review
02 Financial review CHIEF FINANCIAL OFFICER Benoit Fouilland
Slide 14: Record revenue growth
Record revenue growth REVENUE & GROWTH In CHF m +10.5% +0.1% ▪ Double-digit revenue growth across -0.7% divisions, on the back of improving +11.1% customer demand ▪ Positive impact of both volume/mix and pricing 4,723 4,272 ▪ Outperforming key competitors and gaining market share ▪ Revenue growth dr
Slide 15: All regions driving revenue growth
All regions driving revenue growth REVENUE & GROWTH BY REGION In CHF m, Revenue growth on an organic basis at constant currency Firmenich FY 2022 results presentation • 15
Slide 16: Double digit growth driven by volume, mix and pricing, in a challenging cost environment
ADJUSTED EBITDA Double digit growth driven by volume, mix and pricing, in a challenging cost environment ADJ. EBITDA In CHF m and as % of revenue +10.9% ▪ Higher volume, favorable mix linked to Fine Fragrance, and pricing partly offsetting cost inflation 905 460 816 367 ▪ Ongoing raw material, trans
Slide 17: Double-digit revenue growth in Fine Fragrance and Ingredients, unfavorable FX
PERFUMERY & INGREDIENTS Double-digit revenue growth in Fine Fragrance and Ingredients, unfavorable FX REVENUE & GROWTH ADJ. EBITDA In CHF m In CHF m and as % of revenue +10.0% +7.0% -1.3% +11.3% 2,855 3,141 550 588 19.3% 18.7% FY 2021 Growth FX FY 2022 FY 2021 FY 2022 at Constant Currency ▪ Fine Fra
Slide 18: Double-digit Revenue and Adj. EBITDA margin expansion
TASTE & BEYOND Double-digit Revenue and Adj. EBITDA margin expansion REVENUE & GROWTH ADJ. EBITDA In CHF m In CHF m and as % of revenue +11.6% +18.8% +0.4% +0.5% +10.7% 1,581 316 266 1,417 18.8% 20.0% FY 2021 Organic Growth at M&A FX FY 2022 FY 2021 FY 2022 Constant Currency ▪ Double-digit growth ac
Slide 19: Strong cash generation despite unfavorable working capital
FREE CASH FLOW Strong cash generation despite unfavorable working capital, linked to higher safety stocks and inflation Cash In CHF m conversion ratio 51.8% -19.1% -143 ▪ Higher working capital due to -242 +198 +329 -5.9% higher inventories linked to Comparable 511 prioritizing customer service 480
Slide 20: Sustained deleveraging, in line with commitment to strong investment-grade credit rating
LEVERAGE & FINANCIAL POLICY Sustained deleveraging, in line with commitment to strong investment-grade credit rating ADJUSTED LEVERAGE (S&P method estimate) ADJUSTED LEVERAGE AS OF 30 JUNE Leverage (in CHFm) Bond program 2 708 Other debt 308 Cash – 702 Net debt (S&P) 2 314 Leases / Pensions 448 3.1x
Slide 21: Q&A
03 Q&A
Slide 22: Appendix
04 Appendix Firmenich FY 2022 results presentation • 22
Slide 23: Alternative performance measurements
Alternative performance measurements GROWTH AT CONSTANT CURRENCY (CCY) GROWTH ON AN ORGANIC BASIS (ORGANIC) Growth at Constant Currency is used by our management Growth on an Organic Basis is used by our management and Board of Directors to evaluate operating and Board of Directors to evaluate opera
Slide 24: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) REVENUE GROWTH ON AN ORGANIC BASIS AT CONSTANT CURRENCY (OCCY) Revenue Growth on an Organic Basis at Constant Currency is used by our management and Board of Directors to evaluate operating performance. We believe that the elimination of the impact of bus
Slide 25: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) EBITDA EBITDA is defined as earnings before financial income (expense), tax depreciation and amortization. It corresponds to operating profit before depreciation, amortization and impairment losses. For the year ended (In CHF m) June 30, 2022 June 30, 202
Slide 26: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) ADJUSTED EBITDA Adjusted EBITDA is a measure used by our management and Board of Directors to evaluate our core operating performance. We define adjusted EBITDA as EBITDA adjusted to eliminate the impact of identified items of non-recurring nature and/or
Slide 27: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) FREE CASH FLOW (FCF) Free Cash Flow is a measure used by our management and Board of Directors to evaluate our ability to generate cash to return capital to shareholders, repay debt and fund potential acquisitions. We define Free Cash Flow as cash flows f
Slide 28: Alternative performance measurements (cont.)
Alternative performance measurements (cont.) NET DEBT Net Debt is a measure used by management and Board of Directors to assess our financial position. We define Net Debt as the sum of short-term and long-term financial debt less cash, cash equivalents and short-term financial investments. See Note
Slide 29: Debt profile
Debt profile MATURITY PROFILE OF FIRMENICH FUNDING In CHF m 750 747 747 747 RCF (undrawn) Bank debt CHF Bond 475 Hybrid Bond EUR Bond 308 2022 2023 2024 2025 2026 2027 2028 2029 2030 Firmenich FY 2022 results presentation • 29
Slide 30: Thank you
Thank you Firmenich FY 2022 results presentation • 30
Firmenich International — FY2022 Earnings Presentation on 6ix