Slide 1: 2019 Full Year Results
2019 Full Year Results Excellent financial performance 2020 strategy fully on track 24 January 2020
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2019 Full Year Results 24 January 2020 2
Slide 3: Performance highlights
2019 Full Year Results Performance highlights • Sales of CHF 6.2 billion, up 5.8% on a like-for-like* basis and 12.2% in Swiss francs • EBITDA of CHF 1,275 million, an increase of 11.4%; comparable EBITDA margin of 21.5% up from 21.0% in 2018 • Free cash flow of CHF 787 million or 12.7% of sales, an
Slide 4: Sales performance: Excellent growth in both divisions
Sales performance Excellent growth in both divisions in million CHF 6,203 3,404 2,799 Group Fragrances Flavours % 2019 growth on LFL* basis 5.8 % 7.3% 4.5% % 2019 growth in CHF 12.2% 10.9% 13.4% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals 2019 Full Year Results
Slide 5: Sales evolution by market
Sales evolution by market Double-digit growth in high growth markets in million CHF 3,544 3,176 2,659 2,351 FY2018 FY2019 FY2018 FY2019 Mature High growth % of total sales 57% 57% 43% 43% % 2019 growth on LFL* basis 2.4% 10.2% * LFL (like-for-like) excludes the impact of currency, acquisitions and d
Slide 6: Sales evolution by region
Sales evolution by region Strong growth shown by Latin America 2,233 in million CHF 1,982 1,630 1,641 1,475 1,441 699 629 FY FY FY FY FY FY FY FY 2018 2019 2018 2019 2018 2019 2018 2019 LATAM APAC NA EAME % 2019 growth on LFL* basis 15.0% 5.6% 2.0% 5.7% * LFL (like-for-like) excludes the impact of c
Slide 7: Divisional sales performance: Fragrance Division
Divisional sales performance Fragrance Division Fragrance Division Fragrance Division sales • Excellent growth driven by the strong in CHF million performance of new wins and price increases to compensate for higher input costs 2,799 Fine Fragrance sales growth of 5.0% LFL* • Good growth recorded in
Slide 8: Divisional sales performance: Flavour Division
Divisional sales performance Flavour Division Asia Pacific growth of 6.4% LFL* Flavour Division sales • Double-digit performance in Indonesia, Malaysia, in CHF million Philippines, Thailand and Vietnam • Strong single-digit growth in China and India 3,404 EAME increased by 4.4% LFL* • Double-digit g
Slide 9: Acquisition update: 2020 strategy in motion
Acquisition update 2020 strategy in motion 2014 2016 2018 2019 Soliance Spicetec Centroflora Nutra Cosmetics business of AMSilk Active Beauty Naturals Naturals Active Beauty Integrated Solutions Expressions Parfumées Golden Frog L&R Fragrances Naturals drom Fragrances 2017 Fragrance Oils 2015 Nature
Slide 10: Acquisition focus: portfolio aligned with market trends
Acquisition focus Outstanding portfolio aligned with market trends Naturals Local and regional Spicetec Activ International customers Vika Naturex Centroflora Nutra drom Naturex Fragrance Oils Albert Vieille Ungerer Golden Frog Ungerer Aligned with Indena market trends Active Integrated Beauty and o
Slide 11: Givaudan Business Solutions
Givaudan Business Solutions Implementation well advanced - on track to finalise in 2020 EAME NOAM Transition completed Transition completed LATAM Transition completed APAC Mid-way through APAC transition On track to finalise transition during H1 2020 GBS Delivery Centres working effectively within t
Slide 12: Tom Hallam, Chief Financial Officer
Tom Hallam Chief Financial Officer 2019 Full Year Results 24 January 2020 12
Slide 13: Financial highlights
2019 Full Year Results Financial highlights • Sales of CHF 6,203 million, up 5.8% on a like-for-like* basis and 12.2% in Swiss francs • EBITDA of CHF 1,275 million compared to CHF 1,145 million in 2018, an increase of 11.4% • Reported EBITDA margin of 20.6% compared to 20.7% in 2018, with the underl
Slide 14: Exchange rate development
2019 Full Year Results Exchange rate development 3% 2% 2% 1% 1% -2% -2% -3% -6% JPY USD GBP EUR SGD BRL CNY MXN IDR FY 2019 0.91 0.99 1.27 1.11 0.73 0.25 0.14 0.05 0.70 FY 2018 0.88 0.98 1.30 1.15 0.72 0.27 0.15 0.05 0.69 2019 Full Year Results 24 January 2020 14
Slide 15: Operating performance: Group
Operating performance Group: Improved underlying profitability 40.8% Sales of CHF 6,203 million, an increase of Gross margin in % 1,275 5.8% on a like-for-like* basis and 12.2% in Swiss francs EBITDA in CHF million Gross margin of 40.8%, compared to 42.1% in 2018. Strong cost discipline and 42.1% pr
Slide 16: Operating performance: Fragrance Division
Operating performance Fragrance Division Sales of CHF 2,799 million, an increase of 7.3% on a like-for-like* basis and 10.9% in EBITDA 555 in CHF million Swiss francs 508 +9.4% EBITDA of CHF 555 million versus CHF 508 million in 2018, an increase of 9.4%, driven by the strong sales growth and the co
Slide 17: Operating performance: Flavour Division
Operating performance Flavour Division Sales of CHF 3,404 million, an increase of 720 4.5% on a like-for-like* basis and 13.4% in EBITDA in CHF million Swiss francs 637 +12.9% EBITDA of CHF 720 million, compared to CHF 637 million in 2018, driven by the integration of acquired companies, as well as
Slide 18: Amortisation of intangible assets
Amortisation of intangible assets Updated to include all recent acquisitions Total annual amortisation charge (in million CHF, estimated) 161 170 165 125 109 100 40 38 40 40 40 85 92 87 40 75 69 21 21 21 60 17 17 17 4 6 - - 2019 2020E 2021E 2022E 2023E 2024E Pre Quest Quest Other acquisitions Other
Slide 19: Net income
Net income Solid increase of 6.0% in 2019 Income before tax of CHF 808 million, Net income in CHF million increased from CHF 772 million in 2018, driven by increased business and stable 702 non operating expenses, despite higher 663 interest charges related to the recent acquisitions Net income of C
Slide 20: Free cash flow
Free cash flow Strong increase in operating cash flow 787 Free cash flow of CHF 787 million, Free cash flow in CHF million compared to CHF 703 million in 2018. FCF is 12.7% of sales compared to 12.7% in 2018 703 Operating cash flow of CHF 1,136 million, an increase of 24.0% versus 2018 Total net inv
Slide 21: Dividend per share
Dividend per share Increasing 3.3% YoY Free cash flow of CHF 8.6 billion generated over the past 20 years, CHF 4,770 million of cash flow returned to shareholders as dividends* and CHF 504 million (net) through share buy-backs 56 58 60 62* 50 54 47 36 18.8 19.5 20 20.6 21.5 22 15.4 16.3 17.6 787 720
Slide 22: Balanced debt structure
Balanced debt structure Long duration maturity profile 1,064 in million CHF 806 745 452 407 293 226 149 ST < 1 Y 1-2 Y 2-3 Y 3-4 Y 4-5 Y 5-6 Y 8-14 Y C & CE 2019 Full Year Results 24 January 2020 22
Slide 23: Leverage ratio
Leverage ratio Increase related to IFRS 16 and 2019 acquisitions Leverage ratio of 47% as at December 2019 compared to 41% in 2018. The increase is driven by the acquisitions undertaken during 2019 and the increase in lease liabilities, due to the adoption of IFRS 16 Leases. Excluding the impact IFR
Slide 24: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2019 Full Year Results 24 January 2020 24
Slide 25: 2020 Outlook
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Slide 26: 2020 Outlook: Key themes
2020 Outlook Key themes Growth Outlook Raw Materials Strategy • Continued confidence in our • Raw materials outlook for • Focus on delivering 2020 growth strategies 2020 stable at current levels guidance • Local and regional customers • Enhanced position in citrus • Continued integration of continui
Slide 27: Partner of choice
Responsible growth. Shared success. Growing with Delivering Partnering for our customers with excellence shared success 4-5% 12-17% Average organic sales Average free cash Partner growth* flow as % of sales* of choice 5.1% in 2016-2019 12.5% in 2016-2019 * Over a five-year period by 2020 Creating ad
Slide 28: Q&A
Q&A 2019 Full Year Results 24 January 2020 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