Givaudan Sa · SIX:GIVN
Givaudan Sa — FY2016 Earnings Presentation
25 slides from Givaudan Sa's earnings presentation, Jan 31, 2017
Slide 1: 2016 Full Year Results
2016 Full Year Results Solid financial performance - in line with 2020 guidance 31 January 2017
Slide 2: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2016 Full Year Results Presentation 31 January 2017 2
Slide 3: Financial highlights
2016 Full Year Results Financial highlights • Sales of CHF 4.7 billion, up 4.2% on a like-for-like basis • EBITDA of CHF 1,126 million, up 5.2% in Swiss Francs • EBITDA margin of 24.1% in 2016 • Net income of CHF 644 million, up 3.1% year-on-year • Free cash flow of 12.8% of sales • Proposed dividen
Slide 4: Sales performance: In line with 2020 guidance
2016 Full Year Results Sales performance: In line with 2020 guidance 4,663 in million CHF 2,433 2,230 Group Fragrances Flavours % 2016 growth on LFL* basis 4.2% 5.6% 3.0% % 2016 growth in CHF 6.1% 6.4% 5.8% * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals 2016 Full Y
Slide 5: Sales evolution by market
2016 Full Year Results Sales evolution by market: Solid performance in high growth markets, acquisitions mainly accredited to the mature markets in million CHF 2,566 2,369 2,027 2,097 FY2015 FY2016 FY2015 FY2016 Mature High growth % of total sales 54% 55% 46% 45% % 2016 growth on LFL* basis 2.4% 6.4
Slide 6: Sales evolution by region
2016 Full Year Results Sales evolution by region: All regions growing at faster pace than 2015 in million CHF 1,601 1,567 1,320 1,238 1,151 1,020 571 591 FY FY FY FY FY FY FY FY 2015 2016 2015 2016 2015 2016 2015 2016 LATAM APAC NA EAME % 2016 growth on LFL* basis 13.2% 4.6% 2.9% 1.6% * LFL (like-fo
Slide 7: Fragrance Division: Operational Performance
2016 Full Year Results Fragrance Division: Operational Performance Fine Fragrances grew 7.2% Sales and EBITDA Growth driven by Latin America, Middle in million CHF East and strong double-digit growth in North America Consumer Products grew 6.1% Strong growth in both mature and high +6.4% growth mark
Slide 8: Flavour Division: Operational Performance
2016 Full Year Results Flavour Division: Operational Performance Double digit growth with Targeted Sales and EBITDA Customers and in Health & Wellness in million CHF contributed to the overall performance Asia Pacific increased 5.1% driven by double digit growth in India +5.8% Europe, Africa and Mid
Slide 9: Tom Hallam, Chief Financial Officer
Tom Hallam Chief Financial Officer 2016 Full Year Results Presentation 31 January 2017 9
Slide 10: Highlights
2016 Full Year Results Highlights • Sales of CHF 4.7 billion, up 4.2% on a like-for-like basis • EBITDA of CHF 1,126 million, up 5.2% in Swiss Francs • EBITDA margin of 24.1% in 2016 • Net income of CHF 644 million, up 3.1% year-on-year • Investments slightly above 2015, at 3.8% of sales • Free cash
Slide 11: Exchange rate development
2016 Full Year Results Exchange rate development: Results largely unaffected by currencies, despite some significant individual currency movements versus Swiss francs 14% 3% 3% 2% 1% 0% 0% -9% -17% JPY USD GBP EUR SGD BRL CNY MXN IDR FY 2016 0.91 0.99 1.34 1.09 0.71 0.29 0.15 0.05 0.74 FY 2015 0.80
Slide 12: Operating performance: Consistent improvement
2016 Full Year Results Operating performance: Consistent improvement Gross margin Sales of CHF 4,663 million 46.2% 45.6% (2015: CHF 4,396 million) Gross margin of 45.6% compared to 46.2% EBITDA in 2015, mainly driven by impact of Spicetec in million CHF 1,126 EBITDA of CHF 1,126 million, up 5.2% in
Slide 13: Financing costs and other financial expenses
2016 Full Year Results Financing costs and other financial expenses Financing costs Other financial expenses (net) in million CHF in million CHF 61 51 40 37 FY 2015 FY 2016 FY 2015 FY 2016 Financing costs down in 2016, following re-financing over Other financial income and expenses impacted by unhed
Slide 14: Net income: increasing by 3.1%
2016 Full Year Results Net income: increasing by 3.1% as a result of continued solid operating performance Income before tax of CHF 784 million, up Net income from CHF 696 driven by higher operating in million CHF profit Effective tax rate of 18%, flat versus the underlying rate in 2015 (2015 actual
Slide 15: Free cash flow: In line with mid term targets
2016 Full Year Results Free cash flow: In line with mid term targets Free cash flow Operating cash flow of CHF 805 million, down in million CHF from CHF 915 in 2015 Working capital as a % of sales flat versus 2015 720 Total investments of CHF 175 million, including new facilities in India and Switze
Slide 16: Conservative debt profile
2016 Full Year Results Conservative debt profile Reimbursements April 2016 reimbursement of USD 55 million (CHF 53 million) private placement, with an annual interest rate of 5.49% December 2016, reimbursement of CHF 150 million Straight Bond with an annual interest rate of 1.250% Issues In December
Slide 17: Leverage ratio
2016 Full Year Results Leverage ratio: In line with long term targets, impacted in 2016 by Spicetec acquisition Leverage ratio of 19% as at December 2016 as a result of solid cash flow generation, offset by acquisition Intention to maintain a medium term leverage ratio target below 25% 29% 28% 24% 1
Slide 18: Dividend per share: Increasing 3.7% YoY
2016 Full Year Results Dividend per share: Increasing 3.7% YoY Free cash flow of CHF 6.6 billion generated over the past 17 years CHF 3,129 million of cash flow returned to shareholders as dividends* 47 50 54 56* and CHF 504 million (net) through share buy-backs 36 20 20.6 21.5 22 19.5 17.6 18.8 15.
Slide 19: Amortisation of intangible assets
2016 Full Year Results Amortisation of intangible assets Total annual amortisation charge (in million CHF, estimated) • Pre Quest amortisation 132 99 98 94 91 91 of intangible assets of approx. CHF 17 million p.a. 47 • Quest (exc. Goodwill) • Other acquisitions: 40 40 Soliance, Induchem 40 40 40 and
Slide 20: Financial summary
2016 Full Year Results Financial summary • Sales of CHF 4.7 billion, an increase of 4.2% on a like-for-like basis, briefs pipeline and win rate remain strong • Continued strong cost focus and investments to support 2020 targets • Net income of CHF 644 million, up 3.1% year-on-year • Free cash flow o
Slide 21: Gilles Andrier, Chief Executive Officer
Gilles Andrier Chief Executive Officer 2016 Full Year Results Presentation 31 January 2017 21
Slide 22: 2020 guidance: Our commitment
2020 guidance Our commitment
Slide 23: Partner of choice
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 24: Q&A
Q&A 2016 Full Year Results Presentation 31 January 2017 24
Slide 25: 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