Givaudan Sa · SIX:GIVN
Givaudan Sa — Investor Presentation (2015)
26 slides from Givaudan Sa's investor presentation, 2015
Slide 1: Investor presentation: Reinforcing a leadership position – outperforming the market
Investor presentation Reinforcing a leadership position – outperforming the market
Slide 2: Givaudan products drive millions of consumer decisions every day!
Givaudan products drive millions of consumer decisions every day!
Slide 3: Key drivers of consumer repurchase decisions
Key drivers of consumer repurchase decisions Fragrance and Flavour industry Fine Fragrances Flavours Source: AC Scent Nielsen (European) study 78% Smell and taste 45% 4-6% 0.5% of customers COGS of customers COGS Brand image 30% Price 15% Overall experience 8% Brand 5% Fragrance image 3% Packaging 1
Slide 4: The industry
The industry o#
Slide 5: The Fragrance and Flavour industry: End consumer markets
The Fragrance and Flavour industry End consumer markets Our customers Multi-national | Regional | Local | Food service | Private label The cost of flavours and fragrances to our customers is typically between 0.5 – 5% of their product cost Food Beverages Fine Fragrance Household Personal care Invest
Slide 6: Fragrance and Flavour industry: Total market is CHF 18–19 billion
Fragrance and Flavour industry Total market is CHF 18–19 billion Others Givaudan Firmenich Symrise IFF > Givaudan market share above 25% Investor Presentation October 2015 - January 2016 6
Slide 7: "How to win business" model in a competitive bidding situation
“How to win business” model in a competitive bidding situation Product life cycles are getting Our submissions draw on leading shorter – Our customers issue over 35,000 global market knowledge briefings per year: and capabilities • To a small number of Fragrance and Flavour • Creation capability and
Slide 8: Where are we now?
Where are we now?
Slide 9: 2014 Full Year Results: Solid performance in a challenging environment
2014 Full Year Results Solid performance in a challenging environment Sales Gross EBITDA Net income Free cash CHF 4.4 margin CHF 1,053 CHF flow billion, of 46.0%, million 563million, CHF up 3.7% like up from margin of 14.9% up 604million, for like 44.7% 23.9% year on year 13.7% of sales Investor Pre
Slide 10: 2015 Half Year Results: 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 11: 2015 Half Year Results: Sales performance
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 12: 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 13: 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 14: 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 15: 2015 Nine month sales
2015 Nine month sales Improved performance in developing markets 3'296 In million CHF 1'733 1'563 Group Fragrances Flavours % 2015 growth on LFL* basis 2.0% 0.7% 3.3% % 2015 growth in CHF -0.5% -1.5% 0.4% Developing markets 3.3% Mature markets 1.0% * LFL (like-for-like) excludes the impact of curren
Slide 16: Where we are going
Where we are going
Slide 17: 2020 Strategy: Partnering for shared success – Responsible growth
2020 Strategy Partnering for shared success – Responsible growth
Slide 18: Responsible growth. Shared success.
Responsible growth. Shared success. Confidential and proprietary business information of Givaudan 27th August 2015 27th August 2015 18 18
Slide 19: Partner of choice
Responsible growth. Shared success. 4–5% 12–17% Partner Organic sales growth Free cash flow as % of sales of choice Creating additional value through acquisitions Investor Presentation October 2015 - January 2016 19
Slide 20: The value proposition for investors
The value proposition for investors
Slide 21: Unrivalled capabilities
Unrivalled capabilities Depth and range of Global reach Unmatched resources Broadest product offering customer relationships to service our clients 88 56 34 Over 60,000 Locations Creation and Production sites Products sold per year worldwide application centres Investor Presentation October 2015 - J
Slide 22: Well balanced business with natural hedges
Well balanced business with natural hedges Geography • 46% of sales in developing markets • 54% in mature markets Segments Customers and products Balanced portfolio in most fragrance Diversified client base ranging and flavour applications from multinationals to regional clients, from premium brands
Slide 23: Dividend per share
Dividend per share Free cash flow of CHF 5.2 billion generated over the past 15 years CHF 2,114 million of cash flow returned to shareholders as dividends and CHF 504 million (net) through share buy-backs 47 50 36 20 20.6 21.5 22 18.8 19.5 16.3 17.6 15.4 662 8.1 604 6.5 7 549 512 437 390 340 273 295
Slide 24: Increased payout to shareholders: What drives FCF to 14%–16% of sales in 2015
Increased payout to shareholders What drives FCF to 14%–16% of sales in 2015 Improving EBITDA operational leverage of approx. 30%, depending on mix Savings of CHF 15 mio from Flavour production in Makó (Hungary) 2015: CHF 15 mio Reduction of double running Makó/Kemptthal 2015: CHF 10 mio cost Invest
Slide 25: Guidance 2010-2015
Guidance 2010-2015 On track to deliver on our ambitious last mid-term guidance 4,5 to 5,5% Best-in-class 14 to 16% Above 60% Organic sales EBITDA Free cash flow Free cash flow growth per annum* as % of sales return to in 2015 shareholders** Driven by five pillar strategy Developing Research & Health
Slide 26: 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