Givaudan Sa · SIX:GIVN
Givaudan Sa — H1 2005 Earnings Presentation
25 slides from Givaudan Sa's earnings presentation, Aug 9, 2005
Slide 1: Half Year Results 2005
Half Year Results 2005 Tuesday, 9 August 2005
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer
Slide 3: Highlights
Highlights Sustained sales with positive underlying growth Regained growth momentum in the second quarter Strong profitability 3rd share buy back started Confident to reach another good result in 2005 3 Half-Year Results – August 2005
Slide 4: Sustained Sales with Positive Underlying Growth
Sustained Sales with Positive Underlying Growth Strong performance in fragrance consumer products Good growth for flavours in the areas of strategic focus Increased momentum in high growth markets Lower market prices for vanilla and citrus Further portfolio rationalisation in both division
Slide 5: Sustained Sales
Sustained Sales Sales by Division - 0.2% Growth vs. 2004 in local currencies - 2.2% Growth vs. 2004 in CHF In Mio CHF 1'500 1'368 + 2.0% - 1.6% 1'250 + 0.2% - 3.8% 1'000 813 750 555 500 250 0 Group Fragrances Flavours 5 Half-Year Results – August 2005
Slide 6: Regained Sales Momentum in 2nd Quarter 2005
Regained Sales Momentum in 2nd Quarter 2005 In mio CHF Q1 2004 versus Q1 2003 Q2 2004 versus Q2 2003 in CHF in l.c. in CHF in l.c. Fragrances 278.4 -1.8% -0.3% 275.6 -1.5% 0.5% Flavours 423.2 5.4% 7.2% 422.2 1.9% 3.7% Givaudan Total 701.6 2.4% 4.1% 697.8 0.5% 2.4% Q1 2005 versus Q1 2004 Q2 2005 vers
Slide 7: Increased Momentum in High Growth Markets
Increased Momentum in High Growth Markets In mio CHF LATAM Total Sales 10% HY 2004 CHF 1’399 mio EAME Asia Pacific 39% HY 2005 CHF 1’368 mio 19% Half Year -0.2% 2005 USA / Canada 129 + 3.3% 32% Latin America 134 262 Asia Pacific +4.5% 265 465 North America 436 - 2.1% 543 EAME 533 - 1.5% Growth vs. H
Slide 8: Sustained Strong Profitability
Sustained Strong Profitability Gross margin improved from 48.3% to 49.3% Operating margin improved from 20.5% to 20.6% Net profit margin decreased from 16.3% to 15.2% Earnings per share decreased from CHF 29.48 to CHF 28.76 8 Half-Year Results – August 2005
Slide 9: Flavour Division
Flavour Division Sales, Operating Profit and EBITDA In Mio CHF In % of sales - 2% in l.c. 1000 - 4% in CHF 845 813 30% 28.3% 800 26.5% 25% 24.5% 23.0% 600 20% 400 + 3% +3% 194 224 199 230 15% 200 0 10% HY 2004 Rest. HY 2005 HY 2004 Rest. HY 2005 Sales Operating Profit EBITDA 9 Half-Year Results – Au
Slide 10: Flavour Division: Key accomplishments first half 2005
Flavour Division Key accomplishments first half 2005 Good growth in areas of strategic focus • Asia Pacific, Eastern Europe, Latin America • Savoury, Foodservice • Health and Wellness Sales growth in North America and Europe impacted by strong comparables, portfolio rationalisation and lower mar
Slide 11: Fragrance Division
Fragrance Division Sales, Operating Profit and EBITDA In Mio CHF In % of sales 30% 800 + 2% in l.c. + 0% in CHF 25% 600 554 555 20.8% 400 20% 18.9% 16.8% -11% -9% 15.0% 200 15% 93 115 83 105 0 10% HY 2004 Rest. HY 2004 HY 2004 Rest. HY 2005 Sales Operating Profit EBITDA 11 Half-Year Results – August
Slide 12: Fragrance Division: Key accomplishments first half 2005
Fragrance Division Key accomplishments first half 2005 Consumer Product sales substantially outgrew market in all regions and all segments In Fine Fragrances, new global launches and strong growth in Latin America could not compensate for erosion of existing business Double-digit growth of spe
Slide 13: Strong Focus on Innovation
Strong Focus on Innovation Health and wellness: • Sweetness modification • Salt reduction New grapefruit and mint ingredients First application for Granuscent (novel fragrance delivery system) in home care New captive fragrance molecules: • Pomarose, fruity note with aspect of rose and apple
Slide 14: Matthias Währen, Chief Financial Officer
Matthias Währen Chief Financial Officer
Slide 15: Exchange Rates Development
Exchange Rates Development Average Exchange Rates Period-End Exchange Rates HY 2005 vs. HY 2004 30.06.2005 vs. 31.12.2004 12% 5% 6% 0% 0% 0% -3% -2% -5% JPY USD GBP EUR JPY USD GBP EUR 30.06.05 1.14 1.20 2.25 1.55 30.06.05 1.16 1.28 2.30 1.55 30.06.04 1.17 1.27 2.31 1.55 31.12.04 1.11 1.14 2.18 1.55
Slide 16: Business Statement
Business Statement HY 2005 HY 2004 Rest. Change In Mio CHF in % of sales in % of sales in % Sales 1,368 100.0 1,399 100.0 - 2% Cost of sales (694) (50.7) (724) (51.7) - 4% Gross Profit 674 49.3 675 48.3 - Marketing, development & distribution expenses (314) (23.0) (310) (22.3) + 1% Administration ex
Slide 17: Key Operating Ratios
Key Operating Ratios HY 2005 HY 2004 in % of Sales Rest. Gross Profit Margin 49.3% 48.3% Operating Return On Sales (EBIT) 20.6% 20.5% EBITA 21.3% 21.2% EBITDA 24.5% 24.2% EBIDA 20.0% 19.6% Gross Additions to PPE 3.9% 3.6% 17 Half-Year Results – August 2005
Slide 18: Income Statement
Income Statement HY 2005 HY 2004 Rest. Change In Mio CHF in % of sales in % of sales in % Sales 1,368 100.0 1,399 100.0 - 2% Operating profit 282 20.6 287 20.5 - 2% Financial income (expenses), net (13) (0.9) 6 0.4 nr Result before taxes 269 19.7 293 20.9 - 8% Income taxes (61) (4.5) (65) (4.6) - 6%
Slide 19: Detail of Financial Income (Expenses)
Detail of Financial Income (Expenses) HY 2005 HY 2004 Rest. in Mio CHF Interest charges (31) (28) Net currency related gain (losses) incl. derivatives 13 18 Other derivatives net gains (losses) (11) 9 Other financial income (expenses), net 16 7 Total Financial income (expenses), net (13) 6 19 Half-Y
Slide 20: Cash Flow Statement
Cash Flow Statement HY 2005 HY 2004 Rest. in Mio CHF Cash flows from (for) operating activities 168 234 Cash flows from (for) financing activities (109) (84) Cash flows from (for) investing activities 99 (13) Net effect of currency translation on cash 11 - Increase (decrease) in cash 169 137 Cash at
Slide 21: Share Buy Back
Share Buy Back 2nd share buy back finalised 600,000 of 800,000 shares from 2nd share buy back cancelled 3rd share buy back for 720,000 shares initiated (end June 2005: 24,800) 21 Half-Year Results – August 2005
Slide 22: Balance Sheet
Balance Sheet 4,330 mio CHF 4,660 mio CHF 31.12.2004 ST 41% ST 27% ST 26% 30.06.2005 ST 41% Rest. LT 27% LT 30% LT 59% Equity 46% LT 59% Equity 44% Assets Liabilities Assets Liabilities Assets Liabilities and Equity Current 1,766 Current 1,190 Assets 1,933 Liabilities 1,231 Non-Current 2,564 Non-Cur
Slide 23: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer
Slide 24: Outlook 2005
Outlook 2005 Focus on • high growth markets • high value adding segments • innovation Strategic initiatives to close gaps (regions, customers, segments, technologies) Maintaining strict cost discipline On-going site consolidation Sustained focus on total shareholder return dáî~ìÇ~å=êÉã~áåë
Slide 25: Half-Year Results – August 2005
25 Half-Year Results – August 2005