Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Firmenich — HY 2023 Earnings Presentation
31 slides from Dsm-firmenich's earnings presentation, Feb 16, 2023
Slide 1: Half Year 2023 results presentation
Half Year 2023 results presentation 16th February 2023 Firmenich HY 2023 results presentation •
Slide 2: Disclaimer
Disclaimer ▪ This presentation is provided for information purposes only ‘aim’, ‘project’, ‘anticipate’, ‘estimate’, ‘plan’, ‘believe’, None of Firmenich International SA or any of its affiliates, and on the basis of the acceptance of this disclaimer. The ‘expect’, ‘may’, ‘should’, ‘will’, ‘continue
Slide 3: Your presenters
Your presenters CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Gilbert Ghostine Benoit Fouilland Firmenich HY 2023 results presentation • 3
Slide 4: Agenda
Agenda 01 HY 2023 IN REVIEW 03 02 Q&A FINANCIAL REVIEW 04 APPENDIX Firmenich HY 2023 results presentation • 4
Slide 5: HY 2023 in review
01 HY 2023 in review CHIEF EXECUTIVE OFFICER Gilbert Ghostine Firmenich HY 2023 results presentation •
Slide 6: At a glance
At a glance RECORD REVENUE AND STRONG PROACTIVE AND AGILE EXECUTION ADJUSTED EBITDA IN CHALLENGING MARKETS ▪ Double-digit Revenue growth, sustained demand across all key markets, driven by a balanced contribution of volume / mix and +11.5% +7.3% pricing Double-digit Adj. EBITDA ▪ Adaptable business
Slide 7: Continue to lead the industry, with momentum across all divisions and key geographies
Continue to lead the industry, with momentum across all divisions and key geographies STRONG REVENUE GROWTH ACROSS REVENUE GROWTH ACROSS ALL ADJ. EBITDA GROWTH THE BUSINESS REGIONS, STRONG MOMENTUM IN at constant currency KEY GEOGRAPHIES Taste & Fine Fragrance Beyond Europe Adj. EBITDA at constant +
Slide 8: Innovation investment driving growth
Innovation investment driving growth SUPERIOR PERFORMANCE IN KEY INITIATIVES CONTINUED LEADERSHIP IN INNOVATION New ingredients Developing solutions that respond to Sugar consumer demand for more natural, reduction +32% traceable and sustainable products Digitalization & AI Pioneering AI-enabled and
Slide 9: Leadership in natural and sustainable products
Leadership in natural and sustainable products FIRGOOD™ Casmiwood™ SmartProteins® Success for our unique Firgood™ Extending our green chemistry Campus proteins expertise: Serving collection, with new significant processes with Casmiwood™, a new the ongoing consumer shift toward customer wins in the
Slide 10: Effective and proactive pricing actions
Effective and proactive pricing actions CONTINUED CHALLENGING EXTERNAL PROTECTING MARGINS PROTECTING CUSTOMER ENVIRONMENT SUPPLY ▪ Proactive pricing ▪ Higher safety INFLATION FOREIGN initiatives in place, inventories to ensure EXCHANGE inc. energy surcharge best-in-class service ▪ Raw materials ▪ Im
Slide 11: Commercial success with sustainability
Commercial success with sustainability INDUSTRY LEADING RECOGNITION LexisNexis names 1 of only 2 companies SBTi approval of our 51st out of over Firmenich as one of worldwide to be Net-Zero emissions 15,500 companies the world’s most triple A for 5 target worldwide and dynamic innovators consecutive
Slide 12: Priorities for H2
Priorities for H2 23 01 02 03 04 PROFITABLE OFFSET INFLATION LEADING IN RETURN TO ORGANIC THROUGH BREAKTHROUGH STRONG CASH GROWTH AND PROACTIVE INNOVATION GENERATION MARKET SHARE PRICING TO WITH GAINS PRESERVE NORMALIZED PROFITABILITY WORKING CAPITAL Firmenich HY 2023 results presentation • 12
Slide 13: Financial review
02 Financial review CHIEF FINANCIAL OFFICER Benoit Fouilland Firmenich HY 2023 results presentation •
Slide 14: Double-digit Revenue growth with momentum across the business
Double-digit Revenue growth with momentum across the business REVENUE & GROWTH In CHF m +8.9% ▪ +11.5% Revenue growth at constant +10.5% +1.0% currency ▪ Strong momentum across divisions, on -2.6% the back of superior customer service and sustained demand ▪ Positive impact of both volume/mix and 2,4
Slide 15: All regions driving revenue growth
All regions driving revenue growth REVENUE & GROWTH BY REGION In CHF m, Revenue growth at constant currency Firmenich HY 2023 results presentation • 15
Slide 16: Growth at constant currency, driven by volume/mix and pricing, in a challenging cost environment
ADJUSTED EBITDA Growth at constant currency, driven by volume/mix and pricing, in a challenging cost environment ADJ. EBITDA & Growth In CHF m, Adj EBITDA margin as % of revenue -4.4% +7.3% 500 460 ▪ +7.3% Adj. EBITDA growth at constant 450 440 -11.7% currency 400 ▪ Balanced contribution from volume
Slide 17: Adj. EBITDA margin materially impacted by FX and inflation
ADJUSTED EBITDA Adj. EBITDA margin materially impacted by FX and inflation ADJ. EBITDA Margin % of revenue 25 20.5% 20 +0.1ppt 18.0% -1.7ppt ▪ Group Adj. EBITDA margin of 18.0% -0.9ppt 15 ▪ Negative FX impact of -1.7 ppt on Adj. EBITDA margin 10 ▪ Adj. EBITDA margin further impacted by -0.9 ppt due
Slide 18: Growth driven by Fine Fragrance and Ingredients
PERFUMERY & INGREDIENTS Growth driven by Fine Fragrance and Ingredients REVENUE & GROWTH ADJ. EBITDA & GROWTH In CHF m In CHF m, Adjusted EBITDA margin as % of revenue -8.6% +5.6% +9.1% +5.8% 308 281 -3.5% -14.4% 20.6% 17.8% 1,495 1,580 margin margin 18.7% HY 2022 Growth FX HY 2023 HY 2022 Growth FX
Slide 19: Double-digit Revenue growth across division
TASTE & BEYOND Double-digit Revenue growth across division REVENUE & GROWTH ADJ. EBITDA & GROWTH In CHF m In CHF m, Adjusted EBITDA margin as % of revenue +15.3% +4.0% +2.9% +10.2% +13.3% -0.9% 159 153 -6.2% 860 18.5% 20.5% 746 margin margin HY 2022 Organic Growth M&A FX HY 2023 HY 2022 Growth FX HY
Slide 20: Soft cash flow generation due to temporary material impact of high inventory levels on working capital
FREE CASH FLOW Soft cash flow generation due to temporary material impact of high inventory levels on working capital FREE CASH FLOW (FCF) In CHF m ▪ High inventory levels linked to prioritizing 450 241 customer service levels and to raw 400 material cost inflation 350 ▪ Inventory expected to return
Slide 21: 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 31 DECEMBER Leverage (in CHFm) Bond program 2,684 Other debt 288 Cash – 584 Net debt (S&P) 2,389 Leases / Pensions 400
Slide 22: Q&A
03 Q&A Firmenich HY 2023 results presentation •
Slide 23: Appendix
04 Appendix Firmenich HY 2023 results presentation • 23
Slide 24: 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 and Growth on an Organic Basis is used by our management and Board of Directors to evaluate operating performance. We Board of Directors t
Slide 25: 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 26: 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 six months ended (In CHF m) December 31, 2022 De
Slide 27: 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 28: 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 29: 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 30: Debt profile
Debt profile MATURITY PROFILE OF FIRMENICH FUNDING In CHF m 800 750 739 739 739 700 600 475 500 400 300 189 200 100 0 2023 2024 2025 2026 2027 2028 2029 2030 Firmenich HY 2023 results presentation • 30
Slide 31: Thank you
Thank you Firmenich HY 2023 results presentation • 31