Givaudan SA · SIX:GIVN
Givaudan SA — Investor Presentation (November 2021)
55 slides from Givaudan SA's investor presentation, November 2021
Slide 1: Investor presentation
Investor presentation Creating for happier, healthier lives with love for nature. Let’s imagine together.
Slide 2: What we do
What we do
Slide 3: Givaudan products
Givaudan products Drive millions of consumer decisions every day!
Slide 4: Fragrance & Beauty, Taste & Wellbeing provide our customers solutions
Fragrance & Beauty, Taste & Wellbeing, provide our customers Compounds, ingredients and integrated solutions that engage consumers Beverages Savoury Oral care Personal care Fine Fragrances Neutraceuticals Fabric care Snacks Dairy Sweet goods Household Beauty & skin care Investor presentation January
Slide 5: How we do it
How we do it
Slide 6: A unique business model driven by our purpose
A unique business model driven by our purpose Creating for happier, healthier lives with love for nature. • Winning business assumes: being on a core supplier list, submitting a brief, developing a solution and being selected by the customer • Our products are unique co-creations with our customers:
Slide 7: A unique business model with high barriers to entry
A unique business model with high barriers to entry Mastering complexity is a key feature of our space • A research-driven innovation process and a deep understanding of consumer preferences around the world • Sustainability goals creating significant innovation opportunities (e.g. move from non- re
Slide 8: A naturally-hedged portfolio for consistent growth
Givaudan: A naturally-hedged portfolio (products, geography, customers) for consistent growth Savoury 38% Our customers 50% multi-national | 50% local and regional 6.3 Beverages 32% sales in CHF billion Sweet goods 17% Sales in North America Sales in Europe, Africa and 28% of sales Middle East Dairy
Slide 9: Operating in a significant addressable market
Operating in a significant addressable market Givaudan market share as of 2020 Givaudan’s expanded market space worth CHF 42bn Market potential as of 2020 + + Flavour & Taste Functional & Nutrition Fragrance & Beauty 13.1 bn CHF 14.1 bn CHF 14.8 bn CHF Market Potential as of 2020 Market Potential as
Slide 10: A research-driven innovation process
A research-driven innovation process Supported by unrivalled capabilities & innovation 69 over 122,600 CHF 536 mln over 500 over 3,600 Creation and Products sold R&D spend Employees in Active application per year Science & patents Centres 8.5% Technology of sales Innovation initiatives and prioritie
Slide 11: Business processes enabled by digital tools
Business processes enabled by digital tools Selected digital initiatives Carto - AI enabled Consumer and Robotic process Factory 2.0 Traceability creative design customer foresight automation A product creation Discover new consumer Create a virtual workforce to Identify how technology can Guarantee
Slide 12: Value creation through acquisitions
Value creation through acquisitions Cosmetics business of Indena Active Beauty Our strategy in motion Ungerer Speciality Ingredients Flavours & Fragrances Fragrance Oils L&R Fragrance drom Fragrances Vika Natural flavours Golden Frog Naturals Activ Induchem Cosmetics business of AMSilk Active Beauty
Slide 13: Looking forward: Future value creation through our 2025 strategy
Looking forward Future value creation through our 2025 strategy
Slide 14: Givaudan's purpose
Givaudan’s purpose Driving sustainable performance, and acting as a force for good Creations Communities Let’s imagine together Let’s imagine together with customers that Creating for happier, that all communities through our creations benefit by working with more people will enjoy healthier lives G
Slide 15: Megatrends impacting 2025 strategy
Megatrends Impacting 2025 strategy Consumer base is Living longer and more Sustainability is of COVID-19: growing consciously high concern E-commerce, self-care and localisation gain Trend importance Impact • Asia and Africa • Consumer • Consumers will buy • Consumers will buy leading the way behavi
Slide 16: 2025 Strategy: Committed to Growth, with Purpose
2025 Strategy Committed to Growth, with Purpose Creations Nature We create inspiring solutions We show our love for nature for happier, healthier lives GROWING through impactful actions TOGETHER WITH OUR CUSTOMERS People Communities We nurture a place where we We bring benefits to all all love to be
Slide 17: Taste & Wellbeing: best in class product offering
Taste & Wellbeing: best in class product offering Leveraging the full portfolio to reach our growth ambitions Flavour and taste Health, wellbeing and Strengthen our core nutrition Build market leadership Naturals space Flavour and taste Natural functional ingredients Naturals Colouring Protein Prese
Slide 18: Taste & Wellbeing: best in class product offering
Taste & Wellbeing: best in class product offering Flavour and taste Protein Functional enablers ingredients Health and wellbeing (salt, sugar, fat) Naturals (incl. Nutritional biotechnology) ingredients Integrated solutions Corporate presentation updated 25.11.2021
Slide 19: Fragrance & Beauty: growing with all customers across all categories
Fragrance & Beauty: growing with all customers across all categories Deos, bath, Estimated Fabric & retail value shower, hair Fragrances Skin care Make-up (bn CHF)* home care & oral care 160 200 50 140 70 * Source Euromonitor Corporate presentation updated 25.11.2021
Slide 20: Fragrance & Beauty: new and superior product offering
Fragrance & Beauty: new and superior product offering Biotechnology Beauty Leverage our capabilities Further expand our and acquisitions for our offering in Active Beauty ingredients Naturals Delivery systems Provide our customers with Provide the next the most innovative and generation of bio-caps
Slide 21: 2025 Strategy: Performance commitments
2025 Strategy Performance commitments Sales growth Free cash flow Purpose commitments 4.0 – 5.0% >12% of Sales Purpose linked targets 2021 – 2025 2021 – 2025 2021 – 2025 Average Like for Like1 Sales Growth Average FCF2 as % of sales Progress towards all published purpose targets 1. Like-for-like (LF
Slide 22: Performance commitment - Purpose linked targets
2025 Strategy Performance commitment - Purpose linked targets Creations Nature People Communities By 2030 Before 2030 Before 2025 By 2030 • We will double our business • Our operations’ carbon • Everyone on our sites will have • We will source all materials and through creations that emissions will
Slide 23: Purpose and 2025 Strategy encapsulate our approach to ESG
Purpose and 2025 Strategy Encapsulate our approach to ESG Corporate presentation updated 23 25.11.2021
Slide 24: Purpose-linked targets
Purpose-linked targets Encapsulate our approach to ESG Creations Nature People Communities E S G E G S G E S G By 2030 Before 2030 Before 2025 By 2030 • We will double our business • Our operations’ carbon emissions • Everyone on our sites will • We will source all materials through creations that w
Slide 25: History of acting sustainably with solid track record of ESG ratings
History of acting sustainably with solid track record of ESG ratings Confidence in achieving ambitious purpose targets FTSE4Good Index Series Double ‘A rating’ Awarded the Rated as ‘low-risk’ in Included in Ranked in the MSCI ESG for climate and EcoVadis Platinum 2020 with a score of SXI Swiss top 1
Slide 26: Creations for happier, healthier lives of millions of people
Creations for happier, healthier lives of millions of people Doubling our business by 2030 We will impact millions of lives by working with our customers to develop creations for happier, healthier lives Taste & Wellbeing Fragrance & Beauty Going beyond great taste to create food Craftsmanship, crea
Slide 27: A bold ambition and clear roadmap
A bold ambition and clear roadmap. Before 2050, we will become a climate positive business (scope 1, 2 and 3).” Corporate presentation updated 25.11.2021
Slide 28: Strong track record in reducing environmental footprint
Strong track record In reducing environmental footprint Emissions Scope 1+2 – 30% Electricity Renewable sources 81% Water Efficiency – 23% Waste Efficiency – 14% 2015 2020 2015 2020 2015 2020 2015 2020 Corporate presentation updated 25.11.2021
Slide 29: Ambitious targets for environmental leadership
Ambitious targets For environmental leadership Emissions Electricity Water Waste Plastics Scope 1+2+3 Renewable sources Efficiency Efficiency Alternatives Before 2050 By 2025 Current target Current target Before 2030 We will be a Power 100 % Reduce water use by Reduce waste by single- 15 4 Replace c
Slide 30: We have set a bold climate ambition
We have set a bold climate ambition Clear agenda to reduce scope 1, 2 and 3 emissions Corporate presentation updated 25.11.2021
Slide 31: Our purpose commitment to responsible sourcing
Our purpose commitment to responsible sourcing Procurement practices bringing benefits to all involved CHF 2.2 bn 225 >11,400 57% 43% Raw material / consumable People in global procurement Number of different Natural Synthetic spend per year worldwide raw materials sourced raw materials raw material
Slide 32: Sourcing4Good: End-to-end value creation
Sourcing4Good End-to-end value creation Value for suppliers Value for our teams Value for customers Sourcing4Good building blocks Full scope, with Traceability Digitisation Partnerships & third- Integrated operating clear priorities Progress Monitoring party validation model Corporate presentation u
Slide 33: Fully traceable supply chain
Fully traceable supply chain Enhancing agricultural practices Contributing to Positive environmental impacts • Soil health preservation • Biodiversity conservation • Increased carbon sequestration in the soil Full traceability of Guarana seeds from the field to the final extract Improved incomes for
Slide 34: A place where people love to be and grow: Diversity and inclusion
A place where people love to be and grow Diversity and inclusion Inclusive A diverse, inclusive organisation to best meet talent our business goals. acquisition Before 2030, we will be an even more balanced and inclusive company Inclusive talent Our > Before 2025 We will be rated amongst the leading
Slide 35: A place where people love to be and grow: Caring for employees
A place where people love to be and grow Caring for employees Caring for Caring for employee’s safety, health our place and mental well-being Caring for our people Our > Before 2025 We will reduce our total recordable injuries focus cases by 50% areas Before 2025 Everyone on our sites will have acce
Slide 36: A place where people love to be and grow: Improving people's lives
A place where people love to be and grow Improving people’s lives Caring for • All communities benefit by working with our place Givaudan Caring for our people Our > Before 2030 We will improve the lives of millions of people focus in communities where we source and operate areas Strengthening our f
Slide 37: A strong track record of growth and value creation
A strong track record of growth and value creation Value creation history at Givaudan Corporate presentation updated 25.11.2021
Slide 38: Key investment highlights
Key investment highlights Givaudan has a strong track record of delivering with excellence • A company inspired by its purpose, engaged in the B Corp certification and part of the B Builders Movement • A highly resilient / defensive business model: • Key products that are the most important part of
Slide 39: Value creation at Givaudan: sustained value creation for shareholders
Value creation at Givaudan Sustained value creation for shareholders 70 Share price evolution vs SMI Dividend per share in CHF 60 1000% 50 800% 40 600% 30 400% 20 200% 10 0% 0 2000 2005 2010 2015 2020 2000 2005 2010 2015 Givaudan SMI 35 Billion Average annual yield of >CHF of Total Shareholder retur
Slide 40: Dividend per share, increasing 3.2% over 2019
Value creation at Givaudan Dividend per share, increasing 3.2% over 2019 * Approved by shareholders at the AGM on 25 March 2021 54 56 58 60 62 64* 47 50 36 19.5 20 20.6 21.5 22 17.6 18.8 811 15.4 16.3 787 720 703 662 8.1 604 6.5 7 597 594 549 512 437 390 340 273 295 289 262 203 157 145 117 2000 2001
Slide 41: 2021 Half year results
2021 Half year results Strong financial performance
Slide 42: 2021 Half year performance highlights
2021 Half year performance Highlights • Sales of CHF 3,373 million, up 7.9% on a like-for-like* basis and 4.7% in Swiss francs • Excellent sales across all markets and segments, with strong contribution from 2025 strategic growth areas • Strong performance of high growth markets with a like-for-like
Slide 43: 2021 Half year sales performance
2021 Half year sales performance Good growth in both divisions HY 2020 HY 2021 3,373 3,221 1,765 1,809 1,456 1,564 Group Fragrance & Beauty Taste & Wellbeing 7.9% 10.1% 6.1% % 2021 growth on LFL* basis 4.7% 7.4% 2.5% % 2021 growth in CHF * LFL (like-for-like) excludes the impact of currency, acquisi
Slide 44: 2021 Half year sales evolution by market
2021 Half year sales evolution by market Strong performance in mature markets HY 2020 HY 2021 1,868 1,938 1,353 1,435 Mature High growth 58% 57% 42% 43% % of total sales 6.1% 10.4% % 2021 growth on LFL* basis * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals Corporate
Slide 45: 2021 Half year sales evolution by region
2021 Half year sales evolution by region All regions contributing to the growth HY 2020 HY 2021 1,233 1,166 901 924 816 851 338 365 LATAM APAC NOAM EAME 21.2% 6.3% 7.5% 5.5% % 2021 growth on LFL* basis * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals Corporate presen
Slide 46: 2020 Full year results
2020 Full year results Excellent Financial Performance - 2020 Strategy delivered
Slide 47: 2020 Full year results: performance highlights
2020 Full year results Performance highlights • Sales of CHF 6.3 billion, up 4.0% on a like-for-like* basis and 1.9% in Swiss francs • EBITDA of CHF 1,397 million, an increase of 9.6%; comparable EBITDA margin of 22.8% up from 21.5% in 2019 • Free cash flow of CHF 811 million or 12.8% of sales • Pro
Slide 48: 2020 Full year sales performance
2020 Full year sales performance Good growth in both divisions in million CHF 6,322 3,398 2,924 Fragrance & Taste & Group Beauty Wellbeing % 2020 growth on LFL* basis 4.0% 5.4% 2.8% % 2020 growth in CHF 1.9% 4.5% -0.2% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals
Slide 49: 2020 Full year sales evolution by region
2020 Full year sales evolution by region All regions contributing to the growth 2,278 2,233 in million CHF 1,768 1,630 1,602 1,641 699 674 FY FY FY FY FY FY FY FY 2019 2020 2019 2020 2019 2020 2019 2020 LATAM APAC NOAM EAME % 2020 growth on LFL* basis 17.6% 0.6% 5.7% 1.1% % 2020 growth in CHF -2.3%
Slide 50: Operating performance
Operating performance Excellent financial performance Sales of CHF 6,322 million, an increase of 4.0% on a like-for-like basis* and 1.9% in Swiss francs 40.8% Gross margin 42.1% in % Gross margin of 42.1%, compared to 40.8% in 2019, as a result of continued productivity gains, improved 1,397 contrib
Slide 51: Free cash flow
Free cash flow Sustained underlying performance Free cash flow of CHF 811 million, compared to CHF 787 Free cash flow in CHF million million in 2019. Free cash flow is 12.8% of sales compared to 12.7% in 2019. 811 Average Free cash flow over the 2016-2020 strategy 787 period of 12.6% Operating cash
Slide 52: 2020 Strategy successfully delivered
2020 Strategy Successfully Delivered Responsible growth. Shared success. Creating additional value through 16 acquisitions Growing with Delivering with Partnering for shared success since 2014 our customers excellence 4-5% 12-17% CHF 1.5 bn annualised Average organic sales growth* Average free cash
Slide 53: Highlights of key achievements 2016-2020
2020 Strategy Successfully Delivered Highlights of key achievements 2016-2020 Growing with our customers Delivering with excellence Partnering for shared success High Health and Consumer Excellence Integrated Innovators Suppliers People Communities growth well-being preferred in execution solutions
Slide 54: Disclaimer
Disclaimer All figures relate to FY 2020 results except for the slides on 2021 Half year results. 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
Slide 55: Follow us on social media
Follow us on social media @givaudan Investor relations contact: Pierre Bénaich Head of Investor and Media Relations T +41 22 780 9053 E [email protected] Corporate presentation updated 25.11.2021