2017 Half Year Results
Sustained good performance
20 July 2017

Gilles Andrier
Chief Executive Officer

2017 Half Year Results Presentation

20 July 20172

2017 Half Year Results
Performance highlights• Sales of CHF 2,483 million, up 2.3% on a like-for-like* basis and6.4% in Swiss Francs• Project pipeline and win rates sustained at a high level• EBITDA of CHF 597 million in 2017
• EBITDA margin declined to 24.0% from 27.3% in 2016
• Net income of CHF 384 million, up 4.5% year-on-year• Free cash flow of 5.3% of sales, compared to 7.4% in 2016
• Givaudan Business Solutions entering implementation phase* Like-for-like (LFL) excludes the impact of currency, acquisitions and disposals

Our 2017 six month results are a demonstration of the sustainable value webring to our customers, across all regions and segments
2017 Half Year Results Presentation

20 July 20173

2017 Sales performance
Solid growth against strong comparables
In million CHF

2,483

1,346
1,137

Group

Fragrances

Flavours% 2017 growth on LFL* basis

2.3%

0.1%

4.4%

% 2017 growth in CHF

6.4%

0.4%

12.0%

* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2017 Half Year Results Presentation

20 July 2017

4

Sales evolution by market
Mature markets deliver good growth, whilst some highgrowth markets are more challenging
In million CHF

1,415
1,267

HY2016

HY2017

Mature% of total sales% 2017 growth on LFL* basis

54%

1,068

HY2016

HY2017

High Growth
57%

3.8%

1,067

46%

43%
0.6%

* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2017 Half Year Results Presentation

20 July 20175

Sales evolution by region
Recovery in EAME, driven by high growth markets
In million CHF

669

821832

HY2016

HY2017

686665548% 2017 growth on LFL* basis

296

300

HY2016

HY2017

HY2016

HY2017

HY2016

HY2017

LATAM

APAC

NAEAME

-1.4%

-1.5%

6.6%

3.9%

* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2017 Half Year Results Presentation

20 July 2017

6

Divisional sales performance
Fragrance Division
Fine Fragrance sales decreased 0.4% LFL*Fragrance Division sales
in CHF million• strong prior year comparable growthof 11.1%• solid new business gains offset by higher
erosion in key markets

1,137
1,132

Consumer Products grew 0.8% LFL• mature markets: growth driven by all
customer groups and product segments+0.1%• high growth markets: growth driven byinternational customers• comparable sales growth 10.2% in 2016
Fragrance Ingredients and Active Beauty
decreased by 2.7% LFL• Active Beauty sales driven by local andregional customers across main regions• gains offset by weaker performance in
Fragrance Ingredients

HY 2016

HY 2017* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2017 Half Year Results Presentation

20 July 2017

7

Divisional sales performance
Flavour Division
Asia Pacific increased 1.9% LFL*

Flavour Division sales
in CHF million• good performance in India, Thailand andthe Philippines

1,346

EAME increased 4.7% LFL• double-digit growth in Turkey, Egypt,
South Africa and Nigeria

1,202• Single-digit growth in Central andEastern Europe+4.4%

North America grew 8.9% LFL• New wins and growth of existing
business in Dairy, Beverages andSavoury
Latin America decreased by 1.6% LFL• prior year comparable growth of 16.7%• Good momentum in Argentina andMexico offset by decline in Brazil
HY 2016

HY 2017* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2017 Half Year Results Presentation

20 July 20178

Acquisition update
Acquired business complements organic growth

2014

2016

Active Beauty

Flavours

SpicetecSoliance

2015

2017

Active Beauty

Flavours

Acquiredbusinesses
contributed toCHF 145
million to H12017 sales

Active International

Induchem• Investments in acquisitions since 2014 of CHF 572 million• Integration activities completed or well on track• Confirmation of complementarity in core capabilities, naturals, integrated solutions & new business areas

In both Active Beauty and Flavours, our success in providing winning solutions toour customers is a demonstration of our acquisition strategy
2017 Half Year Results Presentation

20 July 20179

Givaudan Business Solutions
Entering implementation phase
Excellence inexecution• Givaudan Business Solutions is a global organisational unit providing best-in-class internal
processes and services• Designed to increase internal efficiencies and leverage best practices from across the organisation,
enabling the Company to ‘deliver with excellence’• The Company will make an investment of CHF 170 million until mid-2020 in order to transition to theGBS organisational structure and way-of-working. This investment will generate annual recurringsavings of CHF 60 million once fully implemented
Benefits

Costs

4560

Recurring

20-20-80-15-55Total
CHF 170M

2017

2018
2017 Half Year Results Presentation

2019

2020
20 July 201710

Tom Hallam
Chief Financial Officer

2017 Half Year Results Presentation

20 July 201711

2017 Half Year Results
Financial highlights• Sales of CHF 2,483 million, up 2.3% on a like-for-like* basis and 6.4% inSwiss Francs• EBITDA of CHF 597 million compared to CHF 638 million in 2016
• Reported EBITDA margin of 24.0% compared to 27.3% in 2016 – underlying
EBITDA stable at 25.0%• Net income of CHF 384 million, up 4.5% year-on-year• Free cash flow of CHF 132 million, 5.3% of sales compared to 7.4% in 2016

* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2017 Half Year Results Presentation

20 July 201712

2017 Half Year Results
Exchange rate development: Results largely unaffected by currencies,
despite the continued currency swings

15%0%

1%0%0%-2%-7%-11%-17%
JPY

USD

GBP

EUR

SGD

BRL

CNYMXNIDR

HY 2017

0.88

0.99

1.25

1.08

0.71

0.31

0.14

0.05

0.74

HY 2016

0.88

0.99

1.41

1.10

0.71

0.27

0.15

0.06

0.73

2017 Half Year Results Presentation

20 July 201713

Operating performanceGroup: Sustained good profitability
Sales of CHF 2,483 million, an increase of6.4% in Swiss Francs

46.8%

Gross margin

638

EBITDAin CHF million
45.6%

597

Gross margin of 45.6%, compared to46.8% in 2016, decline largely due tomargin dilution impact of recently
acquired businesses
EBITDA of CHF 597 million compared toCHF 638 in 2016. Absence of one-off
non-cash pension gain of CHF 55 million
in H1 2016 and impact of costs for GBS
project of CHF 24 million in H1 2017,contributed to decrease
EBITDA margin of 24.0% compared to27.3% in 2016, underlying margin stable
at 25.0%

HY 2016

As %of sales

2017 Half Year Results Presentation

HY 2017

27.3%

EBITDA margin

24.0%

25.0%

Underlying
EBITDA margin25.0%

20 July 201714Operating performanceFragrance Division
EBITDAin CHF million

Sales of CHF 1,137 million, an increase of0.4% in Swiss Francs

351(21.6)%EBITDA of CHF 276 million, or decreasing
by 21.6%, driven by the absence of theone-off non-cash pension gain ofCHF 55 million in H1 2016 and the costs
for the GBS project of CHF 24 million
in H1 2017

276

EBITDA margin of 24.2% compared to
31.0% in 2016, underlying EBITDA
margin improved slightly to 26.3%
HY 2016

As %of sales

2017 Half Year Results Presentation

HY 2017

31.0%

EBITDA margin

24.2%

26.2%Underlying
EBITDA margin26.3%

20 July 201715

Operating performance
Flavour Division
EBITDAin CHF million

Sales of CHF 1,346 million, an increaseof 12.0% in Swiss Francs

321

287
+12.0%EBITDA of CHF 321 million, an increase of12.0%, driven by strong sales growth,
including acquisitions, and tight cost
control
EBITDA margin of 23.9%, flat whencompared to 2016

HY 2016

As %of sales

2017 Half Year Results Presentation

HY 2017

23.9%

EBITDA margin

23.9%

23.9%

Underlying
EBITDA margin23.9%

20 July 201716

Amortisation of intangible assets
Total annual amortisation charge(in million CHF, estimated)• Pre Quest amortisation of
intangible assets of approx.
CHF 17 million p.a.

132

• Quest (exc. Goodwill)47• Other acquisitions: Soliance,Induchem, Spicetec andActiv Intl (exc. Goodwill)
mainly related tocustomers, formulae andtechnologies• IT amortisation updated toreflect size and scope ofprojects (e.g. regulatoryengine)

102

102

40

40

24

21
17

98

95

95

40

40

40

24

20

17

17

21

21

21

21

21

17

17

17

17

17

34

13

2016

2017E
Pre Quest

2018E
2019EQuest
Other acquisitions

2017 Half Year Results Presentation

2020E
2021E
SAP
Other IT

20 July 201717

Net income
Increasing by 4.5%
Net income
in CHF million

Income before tax of CHF 451 million,slightly down from CHF 455 million in2016, driven by CHF 11 million reduction
in Operating Income partially offset by
CHF 7 million reduction in non-operating
expenses384

368

Effective tax rate of 15%, compared to19% in 2016
Net income of CHF 384 million, or 15.5%of sales versus CHF 368 million (15.7%)
in 2016
Basic EPS of CHF 41.70 per share, versus
CHF 40.00 in 2016

HY 201640.00

2017 Half Year Results Presentation

HY 2017

BasicEPS (CHF)

41.70

20 July 201718

Free cash flow
Strong underlying performance
Operating cash flow of CHF 269 million, anincrease of 13.5% versus 2016

Free cash flow
in CHF million
174

Working capital of 27.4% of sales,remained relatively stable (26.9% in 2016)132

Total net investments of CHF 123 million,
or 5.0% of sales, compared to 1.9% ofsales in 2016
Continuing to invest in growth andinnovation, with innovation centre inSwitzerland, production facilities in Indiaand GBS
Free cashflow of CHF 132 million,compared to CHF 174 million in 2016,
FCF is 5.3% of sales compared to 7.4%
in 20162017 Half Year Results Presentation

HY 2016
7.4%

HY 2017

as %of sales

5.3%

20 July 201719

Gilles Andrier
Chief Executive Officer

2017 Half Year Results Presentation

20 July 201720

Responsible growth.
Shared success.

Growing withour customers

Deliveringwith excellence

4-5%

12-17%

Average organic sales
growth*Average free
cash flow as% of sales*

Partnering forshared success

Partnerof choice* Over a five-year period by 2020

Creating additional value through acquisitions

Intention to maintain current dividend practice as partof this ambition2017 Half Year Results Presentation

20 July 2017

21

Q&A

2017 Half Year Results Presentation

20 July 201722

Disclaimer

No warranty and no liability: While Givaudan is making great efforts to include
accurate and up-to-date information, we make no representations orwarranties, expressed or implied, as to the accuracy or completeness of theinformation provided on this presentation/handout and disclaim any liability forthe use of it.
No offer and no solicitation: The information provided on this handout does notconstitute an offer of or solicitation for the purchase or disposal, trading or any
transaction in any Givaudan securities. Investors must not rely on thisinformation for investment decisions.
Forward-looking information: This handout may contain forward-looking
information. Such information is subject to a variety of significant uncertainties,including scientific, business, economic and financial factors, and therefore
actual results may differ significantly from those presented.

Copyright © 2016-2017 Givaudan SA. All rights reserved.

2017 Half Year Results Presentation

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