Givaudan Sa · SIX:GIVN
Givaudan Sa — H1 2017 Earnings Presentation
23 slides from Givaudan Sa's earnings presentation, Jul 20, 2017
Slide 1: 2017 Half Year Results: Sustained good performance
2017 Half Year Results Sustained good performance 20 July 2017
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2017 Half Year Results Presentation 20 July 2017 2
Slide 3: Performance highlights
2017 Half Year Results Performance highlights • Sales of CHF 2,483 million, up 2.3% on a like-for-like* basis and 6.4% in Swiss Francs • Project pipeline and win rates sustained at a high level • EBITDA of CHF 597 million in 2017 • EBITDA margin declined to 24.0% from 27.3% in 2016 • Net income of C
Slide 4: 2017 Sales performance: Solid growth against strong comparables
2017 Sales performance Solid growth against strong comparables In million CHF 2,483 1,346 1,137 Group Fragrances Flavours % 2017 growth on LFL* basis 2.3% 0.1% 4.4% % 2017 growth in CHF 6.4% 0.4% 12.0% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals 2017 Half Year R
Slide 5: Sales evolution by market
Sales evolution by market Mature markets deliver good growth, whilst some high growth markets are more challenging In million CHF 1,415 1,267 1,067 1,068 HY2016 HY2017 HY2016 HY2017 Mature High Growth % of total sales 54% 57% 46% 43% % 2017 growth on LFL* basis 3.8% 0.6% * LFL (like-for-like) exclud
Slide 6: Sales evolution by region
Sales evolution by region Recovery in EAME, driven by high growth markets In million CHF 821 832 669 686 665 548 296 300 HY HY HY HY HY HY HY HY 2016 2017 2016 2017 2016 2017 2016 2017 LATAM APAC NA EAME % 2017 growth on LFL* basis -1.4% -1.5% 6.6% 3.9% * LFL (like-for-like) excludes the impact of c
Slide 7: Divisional sales performance: Fragrance Division
Divisional sales performance Fragrance Division Fine Fragrance sales decreased 0.4% LFL* Fragrance Division sales in CHF million • strong prior year comparable growth of 11.1% 1,137 • solid new business gains offset by higher 1,132 erosion in key markets Consumer Products grew 0.8% LFL • mature mark
Slide 8: Divisional sales performance: Flavour Division
Divisional sales performance Flavour Division Asia Pacific increased 1.9% LFL* Flavour Division sales in CHF million • good performance in India, Thailand and the Philippines 1,346 EAME increased 4.7% LFL • double-digit growth in Turkey, Egypt, 1,202 South Africa and Nigeria • Single-digit growth in
Slide 9: Acquisition update: Acquired business complements organic growth
Acquisition update Acquired business complements organic growth 2014 2016 Soliance Spicetec Active Beauty Flavours Acquired businesses contributed to CHF 145 2015 2017 million to H1 2017 sales Induchem Active International Active Beauty Flavours • Investments in acquisitions since 2014 of CHF 572 mi
Slide 10: Givaudan Business Solutions: Entering implementation phase
Givaudan Business Solutions Entering implementation phase Excellence in execution • Givaudan Business Solutions is a global organisational unit providing best-in-class internal processes and services • Designed to increase internal efficiencies and leverage best practices from across the organisatio
Slide 11: Tom Hallam, Chief Financial Officer
Tom Hallam Chief Financial Officer 2017 Half Year Results Presentation 20 July 2017 11
Slide 12: Financial highlights
2017 Half Year Results Financial highlights • Sales of CHF 2,483 million, up 2.3% on a like-for-like* basis and 6.4% in Swiss Francs • EBITDA of CHF 597 million compared to CHF 638 million in 2016 • Reported EBITDA margin of 24.0% compared to 27.3% in 2016 – underlying EBITDA stable at 25.0% • Net i
Slide 13: Exchange rate development
2017 Half Year Results Exchange rate development: Results largely unaffected by currencies, despite the continued currency swings 15% 1% 0% 0% 0% -2% -7% -11% -17% JPY USD GBP EUR SGD BRL CNY MXN IDR HY 2017 0.88 0.99 1.25 1.08 0.71 0.31 0.14 0.05 0.74 HY 2016 0.88 0.99 1.41 1.10 0.71 0.27 0.15 0.06
Slide 14: Operating performance: Group
Operating performance Group: Sustained good profitability 46.8% Gross margin EBITDA 638 in CHF million Sales of CHF 2,483 million, an increase of 6.4% in Swiss Francs 45.6% 597 Gross margin of 45.6%, compared to 46.8% in 2016, decline largely due to margin dilution impact of recently acquired busine
Slide 15: Operating performance: Fragrance Division
Operating performance Fragrance Division EBITDA in CHF million Sales of CHF 1,137 million, an increase of 351 0.4% in Swiss Francs (21.6)% EBITDA of CHF 276 million, or decreasing 276 by 21.6%, driven by the absence of the one-off non-cash pension gain of CHF 55 million in H1 2016 and the costs for
Slide 16: Operating performance: Flavour Division
Operating performance Flavour Division EBITDA in CHF million 321 Sales of CHF 1,346 million, an increase 287 of 12.0% in Swiss Francs +12.0% EBITDA of CHF 321 million, an increase of 12.0%, driven by strong sales growth, including acquisitions, and tight cost control EBITDA margin of 23.9%, flat whe
Slide 17: Amortisation of intangible assets
Amortisation of intangible assets Total annual amortisation charge (in million CHF, estimated) • Pre Quest amortisation of 132 102 102 98 95 95 intangible assets of approx. CHF 17 million p.a. • Quest (exc. Goodwill) 47 • Other acquisitions: Soliance, Induchem, Spicetec and 40 40 Activ Intl (exc. Go
Slide 18: Net income: Increasing by 4.5%
Net income Increasing by 4.5% Net income in CHF million Income before tax of CHF 451 million, slightly down from CHF 455 million in 2016, driven by CHF 11 million reduction in Operating Income partially offset by 384 CHF 7 million reduction in non-operating expenses 368 Effective tax rate of 15%, co
Slide 19: Free cash flow: Strong underlying performance
Free cash flow Strong underlying performance Free cash flow in CHF million Operating cash flow of CHF 269 million, an increase of 13.5% versus 2016 174 Working capital of 27.4% of sales, remained relatively stable (26.9% in 2016) 132 Total net investments of CHF 123 million, or 5.0% of sales, compar
Slide 20: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2017 Half Year Results Presentation 20 July 2017 20
Slide 21: Partner of choice: Responsible growth. Shared success.
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 22: Q&A
Q&A 2017 Half Year Results Presentation 20 July 2017 22
Slide 23: 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