Slide 1: 2015 Half Year Results
2015 Half Year Results Strongly improved free cash flow, on track to achieve 2015 targets 17 July 2015
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2015 Half Year Results Presentation 17 July 2015 2
Slide 3: Financial highlights
2015 Half Year Results Financial highlights • Sales of CHF 2.2 billion, up 1.3% on a like-for-like* basis • Project pipeline and win rates sustained at a high level • EBITDA of CHF 566 million in 2015 • EBITDA margin improved to 25.9% from 25.6% in 2014 • Net income of CHF 339 million, up 11.2% year
Slide 4: Sales performance: Sustained growth in a difficult environment
2015 Half Year Results Sales performance: Sustained growth in a difficult environment In million CHF 2,184 1,161 1,023 Group Fragrances Flavours % 2008 – 2015 CAGR 4.9% 5.0% 4.8% % 2015 growth on LFL* basis 1.3% 0% 2.6% % 2015 growth in CHF (0.3)% (1.1)% 0.4% * LFL (like-for-like) excludes the impac
Slide 5: HY 2008 to HY 2015 sales CAGR: In line with mid-term guidance
2015 Half Year Results HY 2008 to HY 2015 sales CAGR: In line with mid-term guidance Fragrances Flavours Fine Fragrances 2.7% Latin America 11.1% Asia Pacific 7.1% Consumer Products 6.3% North America 2.9% Fragrance 0.9% Ingredients EAME 3.0% Total Total Fragrances 5.0% Flavours 4.8% Group 4.9% LFL
Slide 6: Sales evolution by market: Presence in developing markets continues to increase
2015 Half Year Results Sales evolution by market: Presence in developing markets continues to increase In million CHF 1,202 1,186 989 998 HY2014 HY2015 HY2014 HY2015 Mature Developing % of total sales 55% 54% 45% 46% % 2008 – 2015 CAGR 1.8% 9.3% % 2015 growth on LFL* basis 1.0% 1.8% * LFL (like-for-
Slide 7: Sales evolution by region
2015 Half Year Results Sales evolution by region 849 In million CHF 786 604 580 508 472 290 286 HY HY HY HY HY HY HY HY 2014 2015 2014 2015 2014 2015 2014 2015 LATAM APAC NA EAME % 2015 growth on LFL* basis 5.4% 1.9% 0.8% 0.1% % 2008 – 2015 CAGR 12.1% 8.0% 1.9% 2.6% % 2008 – 2015 CAGR Developing (Ø
Slide 8: Fragrance Division: Operational Performance
2015 Half Year Results Fragrance Division: Operational Performance Sales and EBITDA Fine Fragrances grew 0.8% LFL* CHF million Good growth in Western Europe, Asia and Middle East, offsetting a weak market in Brazil and North America Consumer Products grew 1.0% LFL* (1.1)% Local and regional customer
Slide 9: Flavour Division: Operational Performance
2015 Half Year Results Flavour Division: Operational Performance Sales and EBITDA Strong growth in the mature markets, CHF million driven by North America, with Beverages and Dairy demonstrating the strongest segmental performance Asia Pacific increased 1.5% LFL* driven by +0.4% China and India, imp
Slide 10: Matthias Währen, Chief Financial Officer
Matthias Währen Chief Financial Officer 2015 Half Year Results Presentation 17 July 2015 10
Slide 11: Highlights
2015 Half Year Results Highlights • Sales CHF 2.2 billion, up 1.3% on a like-for-like* basis • EBITDA increased to CHF 566 million • EBITDA margin improved to 25.9% • Net income of CHF 339 million, up 11.2% year on year • Investments up versus underlying HY 2014, at 3.4% of sales • Free cash flow of
Slide 12: Exchange rate development: Results largely unaffected by currencies
2015 Half Year Results Exchange rate development: Results largely unaffected by currencies, despite the significant strengthening of the Swiss franc early in the year 7% 7% -3% -4% -9% -13% -14% -18% JPY USD GBP EUR SGD BRL CNY MXN IDR HY 2015 0.79 0.95 1.45 1.06 0.70 0.32 0.15 0.06 0.73 HY 2014 0.8
Slide 13: Operating performance: Consistent improvement
2015 Half Year Results Operating performance: Consistent improvement Gross 46.6% 46.5% Sales of CHF 2,184 million margin (2014: CHF 2,191 million) Gross margin of 46.5% compared to 46.6% EBITDA 566 in 2014, lower operational costs in Flavours (in CHF million) and supply chain efficiencies, offset by
Slide 14: Financing costs and other financial expenses
2015 Half Year Results Financing costs and other financial expenses Financing costs Other financial expenses (net) (in CHF million) (in CHF million) 32 31 16 14 HY 2014 HY 2015 HY 2014 HY 2015 2015 Half Year Results Presentation 17 July 2015 14
Slide 15: Net income: increasing by 11% as a result of continued strong operating performance
2015 Half Year Results Net income: increasing by 11% as a result of continued strong operating performance Income before tax of CHF 381 million, up from CHF 376 million in 2014, driven by: Net income • Improved EBITDA In CHF million • Flat financial expenses 339 Effective tax rate of 11%, underlying
Slide 16: Free cash flow: strong underlying performance
2015 Half Year Results Free cash flow: strong underlying performance Operating cash flow of CHF 341 million, up from CHF 218 million in 2014 Free cash flow Working capital as a % of sales down slightly In CHF million versus HY 2014 248 Total investments of CHF 74 million, including the completion of
Slide 17: Conservative debt profile
2015 Half 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 US private placement 346 298 In million CHF 216 150 148 112 100 75 37 ST < 1
Slide 18: Leverage ratio: Continuing to de-leverage on a yearly basis
2015 Half Year Results Leverage ratio: Continuing to de-leverage on a yearly basis • Leverage ratio of 23% as at June 2015 as a result of solid cash flow generation and despite currency impact on equity following the strengthening of the Swiss franc in January 2015 • Intention to maintain a medium t
Slide 19: Amortisation of intangible assets
2015 Half Year Results Amortisation of intangible assets • Pre Quest amortisation Total annual amortisation charge of intangible assets of (in CHF million, 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 t
Slide 20: Financial summary
2015 Half Year Results Financial summary • Sales of CHF 2.2 billion, an increase of 1.3% on a like-for-like* basis, briefs pipeline and win rate sustained at a high level • Operating leverage and strong cost focus driving improved EBITDA margin • Net income of CHF 339 million, up 11.2% versus 2014 •
Slide 21: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2015 Half Year Results Presentation 17 July 2015 21
Slide 22: On track to deliver on our ambitious mid-term guidance
2015 Half 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 23: Q&A
Q&A 2015 Half Year Results Presentation 17 July 2015 23
Slide 24: 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