Givaudan SA · SIX:GIVN
Givaudan SA — Investor Presentation (July 2022)
51 slides from Givaudan SA's investor presentation, July 2022
Slide 1: Slide 1
Slide 2: Investor presentation July 2022
JULY 2022 Investor presentation
Slide 3: What we do
What we do
Slide 4: Givaudan products drive millions of consumer decisions every day
Givaudan products drive millions of consumer decisions every day!
Slide 5: Fragrance & Beauty, Taste & Wellbeing provide compounds, ingredients and integrated solutions
Fragrance & Beauty, Taste & Wellbeing, provide our customers compounds, ingredients and integrated solutions that engage consumers Oral care Beverages Neutraceuticals Savoury Fine Fragrances Personal care Snacks Dairy Sweet goods Household Fabric care Beauty & skin care Investor presentation - updat
Slide 6: How we do it
How we do it
Slide 7: 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 8: 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-ren
Slide 9: A naturally-hedged portfolio for consistent growth
Givaudan: A naturally-hedged portfolio (products, geography, customers) for consistent growth Savoury37% Our customers 6.7 Beverages 35% 50% multi-national | 50% local and regional sales in CHF billion Sweet goods 16% North America Europe 29% of sales Dairy 12% 27% of sales 57% 13 production sites 3
Slide 10: Givaudan operates in multiple industry segments
Givaudan operates in multiple industry segments Inspiring our customer’s brands, delighting consumers 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 of 2020 Market Potential as of 2020 (Givaudan scope of a
Slide 11: A research-driven innovation process
A research-driven innovation process Supported by unrivalled capabilities and innovation 69 Creation and application > 120,000 CHF 562 mln R&D spend in 2021, 8.4% of sales > 550 Employees in Science & > 3,600 Active patents Products sold per year centres Technology Innovation initiatives and priorit
Slide 12: Business processes enabled by digital tools
Business processes enabled by digital tools Selected digital initiatives Carto - AI enabled Consumer and customer Robotic process Factory 2.0 Traceability creative design foresight automation A product creation experience: Discover new consumer behaviours Create a virtual workforce to take over Iden
Slide 13: Value creation through acquisitions
Value creation through acquisitions Our strategy in motion Cosmetics business of Indena Active Beauty Fragrance Oils Ungerer L&R Fragrance Speciality Ingredients Flavours & Fragrances Vika Natural flavours Golden Frog drom Naturals Fragrances Activ Induchem Active Beauty International Natural flavou
Slide 14: Future value creation through our 2025 strategy
Future value creation through our 2025 strategy
Slide 15: Creating for happier, healthier lives with love for nature
Creating for happier, healthier lives with love for nature. Let’s imagine together Creations Nature Let’s imagine together with customers that Let’s imagine together that through our creations more people will we show our love for nature enjoy happier, healthier lives in everything we do Working to
Slide 16: Megatrends impacting 2025 strategy
Megatrends Impacting 2025 strategy Consumer base is Living longer and more Sustainability is of high COVID-19: growing consciously concern E-commerce, self-care and localisation gain Trend importance Impact • Asia and Africa leading • Consumer behaviours • Consumers will buy • Consumers will buy the
Slide 17: Strategy 2025: Committed to Growth, with Purpose
Strategy 2025 Committed to Growth, with Purpose Creations Nature We create inspiring We show our love solutions for happier, for nature through healthier lives impactful actions Growing together with our People customers Communities We nurture a place We bring benefits where we all love to to all co
Slide 18: Strategy 2025 performance commitments
Strategy 2025 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 19: Leveraging the full portfolio in Taste & Wellbeing
Leveraging the full portfolio to reach our growth ambitions in Taste & Wellbeing Flavour & Taste Health, Wellbeing and Strengthen our core Nutrition Build market leadership Naturals Space Flavour & Taste Natural Functional Ingredients Naturals Colouring Protein Preservatives Texturants Natural Nutri
Slide 20: New and superior product offering in Fragrance & Beauty
New and superior product offering in Fragrance & Beauty Biotechnology Beauty Leverage our capabilities and Further expand our offering in acquisitions for our ingredients Active Beauty Naturals Delivery systems Provide our customers with the Provide the next generation of most innovative and qualita
Slide 21: Purpose and 2025 strategy
Purpose and 2025 strategy Encapsulates our approach to ESG
Slide 22: Purpose-linked targets
Purpose-linked targets Encapsulate our approach to ESG Creations E S G Nature E G People S G Communities E S G By 2030 Before 2030 Before 2040 By 2030 Before 2025 Before 2030 We will double our business through Our operations’ carbon Our operations’ will be Everyone on our sites 50% of our senior We
Slide 23: 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 EcoVadis Rated as ‘low-risk’ in 2021 Included in Ranked in the MSCI ESG AAA for climate and Gold medal, ranking us with a score
Slide 24: Creations for happier, healthier lives: doubling our business by 2030
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 By 2030 Taste & Wellbeing Fragrance & Beauty We will double our business through creations Going
Slide 25: PlanetCaps: biodegradable fragrance capsules
PlanetCaps First-to-market biodegradable fragrance capsules The unique PlanetCaps™ technology will enable Givaudan to collaborate with customers in rolling out bespoke biodegradable fragrance systems. A combination of high biodegradability and renewable carbon source material, delivering long- lasti
Slide 26: Ambitious purpose-linked targets for environmental leadership
Ambitious purpose-linked targets For environmental leadership Emissions Electricity Water Plastics Waste scope 1, 2 & 3 renewable sources efficiency alternatives efficiency Focus OPERATIONS: SUPPLY CHAIN: Targets Our operations' Our supply chain 100% of our sites Improve water We will 100% of our 10
Slide 27: Givaudan's carbon footprint
Givaudan’s carbon footprint Our value chain emissions Scope 1 Scope 2 TARGETS – Scope 3 5% 2% • Before 2050, Our supply Emissions generated chain will be climate positive by our energy supply Actions driving our Roadmap: Engage suppliers in the net-zero Scope 3 journey 93% Refine understanding of ou
Slide 28: Our purpose commitment to responsible sourcing
Our purpose commitment to responsible sourcing Sustainable value creation CHF 2.7 bn > 225 > 11,000 57% 43% Raw material / consumable People in global procurement Number of different Renewable Non-renewable spend per year worldwide raw materials sourced raw materials raw materials Sourcing4Good is a
Slide 29: Protecting the environment, preserving biodiversity
Protecting the environment Preserving the biodiversity Supporting the conservation Sustainable use of natural Commitment to forest conservation of diversity of species resources through best practices • Collaborating with the University of California, • Devil’s Claw sustainable wild collect programm
Slide 30: 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 31: Purpose-linked targets: safe, healthy and inclusive business
Ambitious purpose-linked targets To be a safe, healthy and inclusive business Diversity and inclusion Caring for employee safety, health and Communities benefit by working with mental wellbeing Givaudan Focus Before 2025 Before 2030 Before 2025 Before 2025 By 2030 By 2030 Ambition to improve the liv
Slide 32: A place where people love to be and grow: diversity & inclusion
A place where people love to be and grow Diversity & inclusion A diverse, inclusive organisation to best meet our business goals. Before 2030, we will be an even more balanced and inclusive company Before 2025 We will be rated amongst the leading employers for inclusion globally Before 2030 50% of o
Slide 33: 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 employee’s safety, health and mental well-being Before 2025 We will reduce our total recordable injury rate by 50% 2021: -22% Before 2025 Everyone on our sites will have access to mental and physical health initiatives, tools a
Slide 34: A strong track record of growth and value creation
A strong track record of growth and value creation
Slide 35: 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 36: Value creation at Givaudan
Value creation at Givaudan Sustained value creation for shareholders Share price evolution vs SMI Dividend per share in CHF 70 60 1400% 1200% 50 1000% 40 800% 30 600% 20 400% 200% 10 0% 0 2000 2005 2010 2015 2020 2000 2005 2010 2015 2020 Givaudan SMI 40 Billion Average annual yield of >CHF of total
Slide 37: Value creation at Givaudan: dividend per share
Value creation at Givaudan Dividend per share, increasing 3.1% over 2020 58 60 62 64 66* 54 56 47 50 36 20 20,6 21,5 22 843 18,8 19,5 811 16,3 17,6 787 15,4 720 703 662 8,1 604 597 594 6,5 7 549 512 437 390 340 295 289 273 262 203 157 145 117 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20
Slide 38: 2022 Half Year Results
2022 Half Year Results Solid business performance in a challenging environment
Slide 39: 2022 Half year results: good growth in both divisions
2022 Half year results Good growth in both divisions In CHF million HY 2021 • Sales of CHF 3,652 million, up 6.2% on a like-for-like* basis and 8.3% in Swiss francs HY 2022 • Good sales performance across the portfolio and markets, despite strong prior year 3,652 comparables 3,373 • Balanced growth
Slide 40: Sales evolution by region
Sales evolution by region Strong growth in EAME & LATAM In CHF million HY 2021 HY 2022 1,365 1,233 984 883 924 851 365 420 LATAM APAC NOAM EAME 9.0% 2.7% -1.5% 13.7% % 2022 growth on LFL* basis 21.2% 6.3% 7.5% 5.5% % 2021 growth on LFL* basis * Like-for-like: excludes the impact of currency, acquisi
Slide 41: 2021 Full Year Results
2021 Full Year Results Strong start to the 2025 strategic cycle
Slide 42: 2021 Full year results: performance highlights
2021 Full year results Performance highlights • Sales of CHF 6.7 billion, up 7.1% on a like-for-like* basis and 5.7% in Swiss francs • All 2025 strategic focus areas on track and contributing to the results • EBITDA of CHF 1,482 million, an increase of 6.0% – EBITDA margin of 22.2% compared to 22.1%
Slide 43: Sales performance
Sales performance Strong growth in both divisions In CHF million FY 2020 FY 2021 6,684 6,322 3,398 3,593 2,924 3,091 Group Fragrance & Beauty Taste & Wellbeing 7.1% 6.6% 7.6% % 2021 growth on LFL* basis 5.7% 5.8% 5.7% % 2021 growth in CHF * Like-for-like: excludes the impact of currency, acquisition
Slide 44: Sales evolution by region
Sales evolution by region All regions contributing to the growth In CHF million FY 2020 FY 2021 2,449 2,278 1,768 1,824 1,602 1,688 674 723 LATAM APAC NOAM EAME 14.4% 5.7% 4.8% 7.8% % 2021 growth on LFL* basis 7.3% 5.4% 3.2% 7.5% % 2021 growth in CHF * Like-for-like: excludes the impact of currency,
Slide 45: Operating performance: Group
Operating performance Group EBITDA in CHF million 42.1% Gross margin in % 42.7% Sales of CHF 6,684 million, an increase of 7.1% on a like-for-like basis* and 5.7% in Swiss francs 1,482 EBITDA of CHF 1,482 million, increased from CHF 1,397 million in 2020 EBITDA margin of 22.2% compared to 22.1% in 2
Slide 46: Operating performance: Fragrance & Beauty
Operating performance Fragrance & Beauty Sales in CHF million Sales of CHF 3,091 million, an increase of 6.6% on a like-for-like basis* and 677 EBITDA 696 5.8% in Swiss francs in CHF million 3,091 EBITDA of CHF 696 million, increased from CHF 677 million in 2020 The increase was mainly driven by hig
Slide 47: Operating performance: Taste & Wellbeing
Operating performance Taste & Wellbeing Sales in CHF million EBITDA 786 Sales of CHF 3,593 million, an increase of 7.6% on a like-for-like 720 in CHF million basis* and of 5.7% in Swiss francs 3,593 EBITDA of CHF 786 million, increased from CHF 720 million in 2020 +7.6% Acquisition and restructuring
Slide 48: Operating performance: Fragrance & Beauty
Operating performance Fragrance & Beauty Sales in CHF million Sales of CHF 3,091 million, an increase of 6.6% on a like-for-like basis* 677 EBITDA in CHF million 696 and 5.8% in Swiss francs 3,091 EBITDA of CHF 696 million, increased from CHF 677 million in 2020 The increase was mainly driven by hig
Slide 49: Free cash flow
Free cash flow Sustained underlying performance In CHF million Free cash flow of CHF 843 million, compared to CHF 811 million in 2020. Free cash flow is 12.6% of sales compared to 12.8% in 2020 843 Operating cash flow of CHF 1,288 million, compared to CHF 1,189 million in 2020 +3.9% Total net invest
Slide 50: 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 handout and disclaim any liability fo
Slide 51: Follow us on social media @givaudan
Follow us on social media @givaudan