Slide 1: 2017 Full Year Results
2017 Full Year Results Strong financial performance – Investing for the future 26 January 2018
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2017 Full Year Results 26 January 2018 2
Slide 3: Performance highlights
2017 Full Year Results Performance highlights • Sales of CHF 5.1 billion, up 4.9% on a like-for-like* basis and 8.3% in Swiss Francs • EBITDA of CHF 1.1 billion, with underlying EBITDA margin improving from 22.8% to 23.3% • Free cash flow of 11.8% of sales, impacted by investments in our future • Pr
Slide 4: Sales performance
Sales performance Good growth, in line with 2020 guidance in million CHF 5,051 2,708 2,343 Group Fragrances Flavours % 2017 growth on LFL* basis 4.9 % 4.5% 5.3% % 2017 growth in CHF 8.3% 5.1% 11.3% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals 2017 Full Year Resul
Slide 5: Sales evolution by market
Sales evolution by market Balanced growth across all markets in million CHF 2,867 2,566 2,184 2,097 FY2016 FY2017 FY2016 FY2017 Mature High growth % of total sales 55% 57% 45% 43% % 2017 growth on LFL* basis 5.1% 4.8% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals
Slide 6: Sales evolution by region
Sales evolution by region Strong growth lead by North America & EAME in million CHF 1,723 1,601 1,358 1,352 1,320 1,151 591 618 FY FY FY FY FY FY FY FY 2016 2017 2016 2017 2016 2017 2016 2017 LATAM APAC NA EAME % 2017 growth on LFL* basis 4.8% 2.5% 7.0% 5.5% * LFL (like-for-like) excludes the impact
Slide 7: Divisional sales performance: Fragrance Division
Divisional sales performance Fragrance Division growth 4.5% LFL* Fine Fragrance sales grew 7.2% LFL* Fragrance Division sales in CHF million • Strong new business wins in all customer groups, against a similarly strong 2016 • In mature markets, double-digit growth in 2,343 Western Europe • Growth in
Slide 8: Divisional sales performance: Flavour Division
Divisional sales performance Flavour Division growth 5.3% LFL* Asia Pacific grew 3.8% LFL* • Double-digit performance in Singapore, Flavour Division sales in CHF million India, Philippines and Thailand • Significant contribution of Beverages, Dairy and Savoury 2,708 EAME increased 5.1% LFL • Double-
Slide 9: Acquisition update
Acquisition update Acquired business complements organic growth 2014 2016 2018 Soliance Spicetec Centroflora Active Beauty Flavours Nutra Naturals Expressions Acquired Parfumées businesses Fragrances contributed CHF 315 2015 2017 million to 2017 sales Induchem Activ International Active Beauty Vika
Slide 10: Givaudan Business Solutions
Givaudan Business Solutions Project fully on track • Givaudan Business Solutions is well on track with the previously communicated costs and benefit outlook fully confirmed, following the completion of the detailed design activities. • The delivery centre locations in Budapest, Buenos Aires and Kual
Slide 11: Tom Hallam, Chief Financial Officer
Tom Hallam Chief Financial Officer 2017 Full Year Results 26 January 2018 11
Slide 12: Financial highlights
2017 Full Year Results Financial highlights • Sales of CHF 5.1 billion, up 4.9% on a like-for-like* basis and 8.3% in Swiss Francs • EBITDA of CHF 1,089 million compared to CHF 1,126 million in 2016 • Reported EBITDA margin of 21.6% compared to 24.1% in 2016, with the underlying margin at 23.3% vers
Slide 13: Exchange rate development
Exchange rate development Results largely unaffected by currencies in 2017 7% 2% 0% 0% 0% -1% -1% -3% -5% JPY USD GBP EUR SGD BRL CNY MXN IDR FY 2017 0.88 0.98 1.27 1.11 0.71 0.31 0.15 0.05 0.73 FY 2016 0.91 0.99 1.34 1.09 0.71 0.29 0.15 0.05 0.74 2017 Full Year Results 26 January 2018 13
Slide 14: Operating performance: Fragrance Division
Operating performance Fragrance Division EBITDA Sales of CHF 2,343 million, an increase of 603 in CHF million 5.1% in Swiss Francs (19.4)% 486 EBITDA of CHF 486 million versus CHF 603 million in 2016, driven by the costs for the GBS project of CHF 107 million, partially offset by the one-off non-cas
Slide 15: Operating performance: Flavour Division
Operating performance Flavour Division EBITDA in CHF million 603 Sales of CHF 2,708 million, an increase of 11.3% in Swiss Francs 523 +15.4% EBITDA of CHF 603 million, an increase of CHF 80 million over 2016, with strong cost discipline offsetting the reduction in the Gross Profit Margin resulting f
Slide 16: Operating performance: Group
Operating performance Group: Sustained good profitability 45.6% Gross margin 1,126 Sales of CHF 5,051 million, an increase of EBITDA in CHF million 44.5% 8.3% in Swiss Francs 1,089 Gross margin of 44.5%, compared to 45.6% in 2016, due to the dilution arising from the pricing actions to fully compens
Slide 17: Amortisation of intangible assets
Amortisation of intangible assets • Pre Quest amortisation of Total annual amortisation charge intangible assets of (in million CHF, estimated) approx. CHF 17 million p.a. 98 107 102 98 98 68 • Quest (exc. Goodwill) • Other acquisitions: 40 Soliance, Induchem, 34 40 40 40 Spicetec, Activ & Vika (exc
Slide 18: Net income
Net income Increasing by 11.7% Net income in CHF million Income before tax of CHF 795 million, increased from CHF 784 million in 2016 720 Net income of CHF 720 million, or 14.2% of sales versus CHF 644 million, or 13.8% 644 in 2016 Effective tax rate of 9%, compared to 18% in 2016, impacted by lower
Slide 19: Free cash flow
Free cash flow Cashflow impacted by Capex & GBS Investments Free cash flow in CHF million Free cashflow of CHF 594 million, compared to CHF 597 million in 2016. 597 FCF is 11.8% of sales compared to 12.8% 594 in 2016 Operating cash flow of CHF 861 million, an increase of 7.0% versus 2016 Continuing
Slide 20: Dividend per share
Dividend per share Increasing 3.6% YoY Free cash flow of CHF 7.1 Billion generated over the past 18 years CHF 3,664 million of cash flow returned to shareholders as dividends* and CHF 504 million (net) through share buy-backs 56 58* 50 54 47 36 20 20.6 21.5 22 18.8 19.5 15.4 16.3 17.6 720 662 8.1 60
Slide 21: Financing costs and other financial expenses
Financing costs and other financial expenses Financing costs Other financial expenses (net) in million CHF in million CHF 51 42 40 32 FY 2016 FY 2017 FY 2016 FY 2017 Financing costs down in 2017, following re-financing over Other Financial Income and Expenses were lower than in recent years at attra
Slide 22: Conservative debt profile
Conservative debt profile Issuance In December 2017, the Group entered into a five year floating rate private placement (Schuldschein) with a nominal value of EUR 100 million (CHF 117 million) and a seven year 1.331% fixed rate private placement (Schuldschein) with a nominal value of EUR 200 million
Slide 23: Leverage ratio
Leverage ratio In line with long term targets Leverage ratio of 21% as at December 2017 as a result of solid cash flow generation, however impacted by the investments and acquisitions made during the year. Intention to maintain a medium term leverage ratio target below 25% 29% 28% 24% 21% 19% 18% 17
Slide 24: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2017 Full Year Results 26 January 2018 24
Slide 25: 2018 Outlook & 2020 Guidance
2018 Outlook & 2020 Guidance 26 January 2018
Slide 26: 2018 Outlook: Key themes
2018 Outlook Key themes Growth Outlook Raw Materials GBS • Encouraging recovery signs in • Raw materials increasing by • Project fully on track with some key high growth markets 5-6% further cost / cash impact in 2018 • Strong comparable base in • Continue to implement price mature markets and certa
Slide 27: Partner of choice
Responsible growth. Shared success. Growing with Delivering Partnering for our customers with excellence shared success 4-5% 12-17% Partner Average organic sales growth* Average free cash flow as % of sales* of choice * Over a five-year period by 2020 Creating additional value through acquisitions I
Slide 28: Q & A
Q&A 2017 Full Year Results 26 January 2018 28
Slide 29: 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