Slide 1: 2015 Full Year Results: Strong financial performance
2015 Full Year Results Strong financial performance 2 February 2016
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2015 Full Year Results Presentation 2 February 2016 2
Slide 3: Financial highlights
2015 Full Year Results Financial highlights • Sales CHF 4.4 billion, up 2.7% on a like-for-like* basis • EBITDA margin improved to 24.3% in 2015 from 23.9% in 2014 • Free cash flow was 16.4% of sales, compared to 13.7% in 2014 • Dividend of CHF 54.00 per share proposed, up 8.0% year on year * Like-f
Slide 4: Sales performance: CAGR in line with mid term 2015 guidance
2015 Full Year Results Sales performance: CAGR in line with mid term 2015 guidance In million CHF 4,396 2,300 2,096 Group Fragrances Flavours % 2008 – 2015 CAGR 4.9% 5.0% 4.8% % 2015 growth on LFL* basis 2.7% 1.9% 3.5% % 2015 growth in CHF (0.2)% (0.6)% 0.2% * LFL (like-for-like) excludes the impact
Slide 5: FY 2008 to FY 2015 sales CAGR: Consistent growth in both divisions
2015 Full Year Results FY 2008 to FY 2015 sales CAGR: Consistent growth in both divisions Fragrances Flavours Fine Fragrances 2.9% Latin America 11.0% Asia Pacific 6.3% Consumer Products 6.2% North America 2.7% Fragrance and Cosmetic 1.6% Ingredients EAME 3.2% Total Total Fragrances 5.0% Flavours 4.
Slide 6: Sales evolution by market: developing markets at more than 5x mature growth
2015 Full Year Results Sales evolution by market: On a CAGR basis, developing markets at more than 5x the growth of mature markets In million CHF 2,400 2,369 2,027 2,004 FY2014 FY2015 FY2014 FY2015 Mature Developing % of total sales 54% 54% 46% 46% % 2008 – 2015 CAGR 1.7% 9.3% % 2015 growth on LFL*
Slide 7: Sales evolution by region: Improved second half in developing markets
2015 Full Year Results Sales evolution by region: Improved sales performance in the second half of the year in all developing markets 1686 In million CHF 1567 1238 1188 1020 951 579 571 FY FY FY FY FY FY FY FY 2014 2015 2014 2015 2014 2015 2014 2015 LATAM APAC NA EAME % 2015 growth on LFL* basis 10.
Slide 8: Fragrance Division: Operational Performance
2015 Full Year Results Fragrance Division: Operational Performance Fine Fragrances grew 3.0% Sales and EBITDA Growth driven by Latin America, Middle CHF million East and North America Consumer Products grew 2.7% Solid growth in developing markets (0.6)% Double-digit growth in Latin America Good grow
Slide 9: Flavour Division: Operational Performance
2015 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 2.9% driven by China and India Europe, Africa and Middle East grew 0.4% +0.2% dri
Slide 10: Matthias Währen, Chief Financial Officer
Matthias Währen Chief Financial Officer 2015 Full Year Results Presentation 2 February 2016 10
Slide 11: Highlights
2015 Full Year Results Highlights • Sales CHF 4.4 billion, up 2.7% on a like-for-like basis • EBITDA of CHF 1070 million, up 8.0% in local currencies • EBITDA margin improved to 24.3%, including a one-off net gain of CHF 20 million • Net income of CHF 635 million, up 12.7% year on year • Underlying
Slide 12: Exchange rate development: Results largely unaffected by currencies
2015 Full Year Results Exchange rate development: Results largely unaffected by currencies, despite some significant individual currency movements versus Swiss francs 4% 0% -3% -3% -7% -7% -12% -14% -26% JPY USD GBP EUR SGD BRL CNY MXN IDR FY 2015 0.80 0.96 1.47 1.07 0.70 0.29 0.15 0.06 0.72 FY 2014
Slide 13: Operating performance: Consistent improvement
2015 Full Year Results Operating performance: Consistent improvement Sales of CHF 4,396 million (2014: CHF 4,404 million) Gross 46.0% 46.2% margin Gross margin of 46.2%, compared to 46.0% in 2014, lower operational costs in Flavours and supply chain efficiencies EBITDA of CHF 1,070 million, up 1.6%
Slide 14: Financing costs and other financial expenses
2015 Full Year Results Financing costs and other financial expenses Financing costs Other financial expenses (net) (in CHF million) (in CHF million) 63 61 27 20 FY 2014 FY 2015 FY 2014 FY 2015 Financing costs down in 2015, following re-financing over Other financial income and expenses impacted by u
Slide 15: Net income: increasing by 13% as a result of continued strong operating performance
2015 Full Year Results Net income: increasing by 13% as a result of continued strong operating performance Income before tax of CHF 706 million, up from CHF 677 driven by higher operating profit Net income In CHF million Effective tax rate of 10%, underlying tax rate of 18% Net income of CHF 635 mil
Slide 16: Free cash flow: Achieving mid term target
2015 Full Year Results Free cash flow: Achieving mid term target Operating cash flow of CHF 915 million, up from CHF 806 in 2014 Free cash flow In CHF millions Working capital as a % of sales down versus 2014 720 Total investments of CHF 160 million, including new facilities in China and Singapore N
Slide 17: Conservative debt profile
2015 Full Year Results Conservative debt profile March 2015: Issued a CHF 200 million tranche of the multilateral facility, of which CHF 125 million was reimbursed before June 2015 May 2015: Reimbursement of USD 50 million private placement in the USA 478 In million CHF 299 208 210 140 148 150 ST <
Slide 18: Leverage ratio: Continuing to de-leverage on a yearly basis
2015 Full Year Results Leverage ratio: Continuing to de-leverage on a yearly basis Leverage ratio of 15% as at December 2015 as a result of solid cash flow generation Intention to maintain a medium term leverage ratio target below 25% 29% 28% 24% 18% 17% 15% Dec '10 Dec '11 Dec '12 Dec '13 Dec '14 D
Slide 19: Dividend per share: Increasing 8.0% YoY
2015 Full Year Results Dividend per share: Increasing 8.0% YoY Free cash flow of CHF 5.9 billion generated over the past 16 years CHF 2,612 million of cash flow returned to shareholders as dividends* 47 50 54* and CHF 504 million (net) through share buy-backs 36 20 20.6 21.5 22 18.8 19.5 16.3 17.6 1
Slide 20: Amortisation of intangible assets
2015 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+ other intangible assets (exc. Goodwill) 155 160 180 157 115 99 amounts to CHF 1,225 million, up
Slide 21: Financial summary
2015 Full Year Results Financial summary • Sales of CHF 4.4 billion, an increase of 2.7% 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 635 million, up 12.7% versus 2014 • Cash flow ex
Slide 22: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2015 Full Year Results Presentation 2 February 2016 22
Slide 23: 2011 – 2015 guidance: Our achievements
2011 – 2015 guidance Our achievements
Slide 24: Delivering on all financial commitments
2011 – 2015 guidance Delivering on all financial commitments 2011 – 2015 Guidance Actual Performance 4.5 – 5.5% organic sales 2008 – 2015 CAGR of 4.9% growth p.a. Best-in-class Industry leading EBITDA EBITDA margin of 24.3% 14-16% FCF FCF as % of sales in 2015 of as % of sales 16.4% Above 60% Averag
Slide 25: 2020 guidance: Our commitment
2020 guidance Our commitment
Slide 26: Partner of choice: Responsible growth. Shared success.
Responsible growth. Shared success. 4–5% 12–17% Partner Average organic sales growth* Average free cash flow as of choice % of sales* * Over a five-year period by 2020 Intention to maintain current dividend practice as part of this ambition 2015 Full Year Results Presentation 2 February 2016 26
Slide 27: Q&A
Q&A 2015 Full Year Results Presentation 2 February 2016 27
Slide 28: 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