2017 Full Year Results
Strong financial performance –Investing for the future
26 January 2018

Gilles Andrier
Chief Executive Officer

2017 Full Year Results

26 January 20182

2017 Full Year Results
Performance highlights• Sales of CHF 5.1 billion, up 4.9% on a like-for-like* basis and8.3% in Swiss Francs• EBITDA of CHF 1.1 billion, with underlying EBITDA margin improvingfrom 22.8% to 23.3%• Free cash flow of 11.8% of sales, impacted by investments in our future• Proposed dividend of CHF 58.00 per share, up 3.6% year on year
• Givaudan Business Solutions (GBS) progressing as planned* Like-for-like (LFL) excludes the impact of currency, acquisitions and disposals

Our 2017 full year results demonstrate our ability to deliver high levels of performance
whilst investing in our future success2017 Full Year Results

26 January 20183

Sales performance
Good growth, in line with 2020 guidancein million CHF

5,051

2,708
2,343

Group

Fragrances

Flavours% 2017 growth on LFL* basis

4.9 %

4.5%

5.3%

% 2017 growth in CHF

8.3%

5.1%

11.3%

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

2017 Full Year Results

26 January 2018

4

Sales evolution by market
Balanced growth across all markets
in million CHF

2,867
2,566
2,097

FY2016FY2017

Mature% of total sales

55%% 2017 growth on LFL* basis

FY2017

High growth
57%

5.1%

FY2016

2,184

45%

43%
4.8%

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

2017 Full Year Results

26 January 2018

5

Sales evolution by region
Strong growth lead by North America & EAME
1,723

in million CHF
1,601

1,320

1,358

1,352
1,151% 2017 growth on LFL* basis591618FY2016FY2017FY2016FY2017FY2016FY2017FY2016FY2017

LATAM

APAC

NAEAME

4.8%

2.5%

7.0%

5.5%

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

2017 Full Year Results

26 January 2018

6

Divisional sales performance
Fragrance Division growth 4.5% LFL*
Fine Fragrance sales grew 7.2% LFL*

Fragrance Division sales
in CHF million• Strong new business wins in all customer
groups, against a similarly strong 2016
• In mature markets, double-digit growth inWestern Europe• Growth in high growth markets driven by
the Middle East and Latin America in thesecond half of 2017

2,343
2,230

Consumer Products increased 4.1% LFL+5.1%• Balanced growth in both high growth andmature markets• Double-digit growth with local and regionalcustomers
Fragrance Ingredients and Active Beauty
increased 2.8% LFL• Double-digit growth in Active Beauty• Fragrance Ingredients flat vs 2016
FY 2016

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

2017 Full Year Results

26 January 20187Divisional sales performance
Flavour Division growth 5.3% LFL*
Asia Pacific grew 3.8% LFL*
Flavour Division sales
in CHF million• Double-digit performance in Singapore,
India, Philippines and Thailand• Significant contribution of Beverages, Dairyand Savoury

2,708

EAME increased 5.1% LFL• Double-digit growth in Africa and theMiddle East
• Single-digit growth in Central and Eastern
Europe, lead by Turkey and Russia

2,433• Good growth in Beverages, Snacks andSavoury+11.3%

North America grew 8.5% LFL• New wins and growth of existing businessin Beverages and Dairy
Latin America increased by 1.5% LFL• Prior year comparable growth of 17.1%• Good momentum in Argentina and Mexico
offset by a decline in Brazil

FY 2016

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

2017 Full Year Results

26 January 20188

Acquisition update
Acquired business complements organic growth

2014

2016

Active Beauty

Flavours

Soliance

2015
Induchem

Active Beauty

2018

Spicetec

Centroflora
Nutra

Naturals2017

Acquiredbusinesses
contributed
CHF 315
million to 2017
sales

Expressions
ParfuméesFragrances

Activ International
Vika B.V.

Flavours• Investments in acquisitions since 2014 of CHF 691 million• Integration activities completed or well on track, with good growth profile of acquired companies in 2017
• Confirmation of complementarity in core capabilities, naturals, integrated solutions and new business areas

In both divisions, our acquisitions are fully aligned with our 2020 strategic priorities
in delivering winning solutions to our customers
2017 Full Year Results

26 January 20189

Givaudan Business Solutions
Project fully on track• Givaudan Business Solutions is well on track with the previously communicated costs and benefit
outlook fully confirmed, following the completion of the detailed design activities.
• The delivery centre locations in Budapest, Buenos Aires and Kuala Lumpur have been established andmore than 200 new employees have been recruited.
• First transition activities are well underway in Europe and in Asia Pacific, with the first handover ofactivities planned in the first half of 2018.
Benefits

Costs

4560

20
(15)
(107)

Cost
Cash
Impact

(7)

(41)

(47)

(77)

(33)

(13)

2017

2018

2019

2020

2017 Full Year Results

26 January 2018

TotalCHF
170M

10Tom Hallam
Chief Financial Officer2017 Full Year Results

26 January 201811

2017 Full Year Results
Financial highlights• Sales of CHF 5.1 billion, up 4.9% on a like-for-like* basis and 8.3% inSwiss Francs• EBITDA of CHF 1,089 million compared to CHF 1,126 million in 2016
• Reported EBITDA margin of 21.6% compared to 24.1% in 2016, with theunderlying margin at 23.3% versus 22.8% in 2016
• Net income of CHF 720 million, up 11.7% year-on-year• Free cash flow of CHF 594 million, 11.8% of sales compared to 12.8% in2016* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2017 Full Year Results

26 January 201812

Exchange rate development
Results largely unaffected by currencies in 20177%2%0%0%0%-1%-1%-3%-5%JPY

USD

GBP

EUR

SGD

BRL

CNYMXNIDR

FY 2017

0.88

0.98

1.27

1.11

0.71

0.31

0.15

0.05

0.73

FY 2016

0.91

0.99

1.34

1.09

0.71

0.29

0.15

0.05

0.74

2017 Full Year Results

26 January 201813

Operating performance
Fragrance Division
Sales of CHF 2,343 million, an increase of
5.1% in Swiss Francs

603

EBITDAin CHF million(19.4)%

486

EBITDA of CHF 486 million versus CHF 603
million in 2016, driven by the costs for theGBS project of CHF 107 million, partially
offset by the one-off non-cash gain ofCHF 18 million resulting from pension
changes. In 2016 the division recognised a
net one-off non-cash gain of CHF 62 million
in relation to pension changes.
EBITDA margin of 20.7% compared to27.0% in 2016, whilst the underlying
EBITDA margin improved slightly to 24.5%

FY 2016

As %of sales

2017 Full Year Results

FY 2017

27.0%

EBITDA margin

20.7%

24.3%

Underlying
EBITDA margin

24.5%

26 January 201814

Operating performance
Flavour Division
EBITDAin CHF million

Sales of CHF 2,708 million, an increaseof 11.3% in Swiss Francs

523603+15.4%EBITDA of CHF 603 million, an increase ofCHF 80 million over 2016, with strong
cost discipline offsetting the reduction inthe Gross Profit Margin resulting from themargin dilution related to the pricing
actions taken to fully compensate forincreases in input costs
EBITDA margin of 22.3%, compared to21.5% in 2016, whilst the underylingmargin improved from 21.5% to 22.2%
FY 2016

As %of sales

2017 Full Year Results

FY 2017

21.5%

EBITDA margin

22.3%

21.5%

Underlying
EBITDA margin

22.2%

26 January 201815

Operating performanceGroup: Sustained good profitability
45.6%

1,126

Sales of CHF 5,051 million, an increase of
8.3% in Swiss Francs

Gross margin
EBITDAin CHF million

44.5%

1,089

Gross margin of 44.5%, compared to45.6% in 2016, due to the dilution arisingfrom the pricing actions to fullycompensate increased input costs
EBITDA of CHF 1,089 million compared toCHF 1,126 in 2016.
•Reduction mainly in relation to GBS withcosts of CHF 107 million being partially
offset by non-cash gains resulting frompension changes of CHF 20 million•In 2016 a net one-off non-cash gain ofFY 2016

CHF 62 million resulting mainly fromchanges in pension plans

As %of sales

EBITDA margin of 21.6% compared to24.1% in 2016, with the underlying margin
at 23.3% versus 22.8% in 20162017 Full Year Results

FY 2017

24.1%

EBITDA margin

21.6%

22.8%

Underlying
EBITDA margin

23.3%

26 January 201816

Amortisation of intangible assets• Pre Quest amortisation of
intangible assets ofapprox. CHF 17 million
p.a.

Total annual amortisation charge(in million CHF, estimated)
98

107

102

98

98

40

40

68

• Quest (exc. Goodwill)• Other acquisitions:
Soliance, Induchem,
Spicetec, Activ & Vika(exc. Goodwill) mainly
related to customers,
formulae andtechnologies• IT amortisation updated
to reflect size and scopeof projects (e.g.
regulatory engine)

34

40

40

26

28

23

20

20

21

21

21

21

21

40

18
17

2017

17

17

17

172018E

2019E

2020E

2021E

Pre Quest2017 Full Year Results

Quest

Other acquisitions

462022E
Other IT26 January 201817

Net income
Increasing by 11.7%
Net income
in CHF million

Income before tax of CHF 795 million,
increased from CHF 784 million in 2016

720

Net income of CHF 720 million, or 14.2%
of sales versus CHF 644 million, or 13.8%
in 2016644

Effective tax rate of 9%, compared to 18%
in 2016, impacted by lower tax expenses
in the United States
Basic EPS of CHF 78.18 per share, versus
CHF 69.95 in 2016

FY 201669.95

2017 Full Year Results

FY 2017

BasicEPS (CHF)

78.18

26 January 201818

Free cash flowCashflow impacted by Capex & GBS Investments
Free cashflow of CHF 594 million,compared to CHF 597 million in 2016.
FCF is 11.8% of sales compared to 12.8%in 2016

Free cash flow
in CHF million
597
594

Operating cash flow of CHF 861 million, anincrease of 7.0% versus 2016
Continuing to invest in growth andinnovation, with the innovation centre inSwitzerland, manufacturing expansion in
Asia and GBS
Total net investments of CHF 242 million,
or 4.8% of sales, compared to 3.8% ofsales in 2016
Working capital of 24.5% of sales, flatversus 2016

FY 2016
12.8%

2017 Full Year Results

FY 2017

as %of sales

11.8%

26 January 2018

19Dividend per share
Increasing 3.6% YoYFree cash flow of CHF 7.1 Billion generated over the past 18 years
CHF 3,664 million of cash flow returned to shareholders as dividends*
and CHF 504 million (net) through share buy-backs
36

15.4

6.5

7340
203

18.8 19.5
16.3 17.6

20

20.6 21.5

662
549

56

58*

597

594

720
604

512
437

390
295

54

228.1

273

4750

289

262
157

145

117

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Free Cash FlowDividend* Subject to approval of shareholders at the AGM in March 20182017 Full Year Results

26 January 201820

Financing costs and other financial expenses

Financing costs

Other financial expenses (net)in million CHF

in million CHF

51
4240
32

FY 2016

FY 2017

Financing costs down in 2017, following re-financing overrecent years at attractive interest rates.

2017 Full Year Results

FY 2016

FY 2017

Other Financial Income and Expenses were lower than in2016, mainly due to reduced Fx losses.

26 January 201821

Conservative debt profile
Issuance
In December 2017, the Group entered into a five year floating rate private placement (Schuldschein)with a nominal value of EUR 100 million (CHF 117 million) and a seven year 1.331% fixed rate privateplacement (Schuldschein) with a nominal value of EUR 200 million (CHF 233 million). The proceeds ofEUR 300 million were used mainly to repay the short-term borrowings withdrawn during the year.
534

in million CHF
385
308

218
141

150

199
147

59
1
ST < 1 Y

1-2 Y

2-3 Y

3-4 Y

4-5 Y2017 Full Year Results

5-6 Y

6-7 Y

7-8 Y

8-14 Y26 January 2018

C & CE

22

Leverage ratio
In line with long term targets
Leverage ratio of 21% as at December 2017 as a result of solid cash flow generation, however impacted
by the investments and acquisitions made during the year.
Intention to maintain a medium term leverage ratio target below 25%

28%

29%
24%

18%

Dec '10

Dec '11

Dec '12

Dec '132017 Full Year Results

17%

Dec '14

21%

19%
15%

Dec '15

Dec '16

Dec '17

26 January 201823

Gilles Andrier
Chief Executive Officer

2017 Full Year Results

26 January 201824

2018 Outlook & 2020 Guidance

26 January 2018

2018 Outlook
Key themes

Growth Outlook

Raw Materials

GBS• Encouraging recovery signs insome key high growth markets• Raw materials increasing by
5-6%• Strong comparable base inmature markets and certain
segments• Continue to implement priceincreases in collaboration
with our customers• Project fully on track withfurther cost / cash impact in2018• In addition, short term one
off impact due to key
supplier disruption

2017 Full Year Results

26 January 201826

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 practiceas part of this ambition2017 Full Year Results

26 January 2018

27

Q&A

2017 Full Year Results

26 January 201828

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 © 2018 Givaudan SA. All rights reserved.

2017 Full Year Results

26 January 201829