2019 Full Year Results
Excellent financial performance2020 strategy fully on track
24 January 2020

Gilles Andrier
Chief Executive Officer

2019 Full Year Results

24 January 20202

2019 Full Year Results
Performance highlights• Sales of CHF 6.2 billion, up 5.8% on a like-for-like* basis and12.2% in Swiss francs• EBITDA of CHF 1,275 million, an increase of 11.4%; comparable EBITDA
margin of 21.5% up from 21.0% in 2018
• Free cash flow of CHF 787 million or 12.7% of sales, an increase of 11.9%• Proposed dividend of CHF 62.00 per share, up 3.3% year-on-year• Strong portfolio aligned with key consumer and societal trends – powerfulcombination of innovation and acquisitions• Fully on track to deliver 2020 guidance* Like-for-like (LFL) excludes the impact of currency, acquisitions and disposals“Our strong performance in 2019 demonstrates the strength of our business and our ability toconsistently deliver industry leading financial results.”
2019 Full Year Results

24 January 20203

Sales performance
Excellent growth in both divisions
in million CHF

6,203

3,404
2,799

Group

Fragrances

Flavours% 2019 growth on LFL* basis

5.8 %

7.3%

4.5%

% 2019 growth in CHF

12.2%

10.9%

13.4%

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

2019 Full Year Results

24 January 2020

4

Sales evolution by market
Double-digit growth in high growth markets
in million CHF

3,544
3,176
2,659
2,351

FY2018FY2019Mature% of total sales

57%% 2019 growth on LFL* basis

FY2019High growth
57%

2.4%

FY2018

43%

43%
10.2%

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

2019 Full Year Results

24 January 2020

5

Sales evolution by region
Strong growth shown by Latin America
2,233

in million CHF
1,982

1,641

1,630
1,475629

FY
2018% 2019 growth on LFL* basis

1,441699

FY
2019

FY2018

FY
2019

FY
2018

FY2019FY2018

FY
2019

LATAM

APAC

NAEAME

15.0%

5.6%

2.0%

5.7%

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

2019 Full Year Results

24 January 2020

6

Divisional sales performance
Fragrance Division
Fragrance Division
Fragrance Division sales
in CHF million• Excellent growth driven by the strong
performance of new wins and price increases tocompensate for higher input costs

2,799

Fine Fragrance sales growth of 5.0% LFL*
• Good growth recorded in both mature and highgrowth markets, driven by a high level of newbusiness wins across all customer groups andstrong market performance of recent launches

2,525

+7.3%
LFL*

Consumer Products increased by 7.8% LFL*
• Growth achieved in all geographical areas andproduct segments
Fragrance Ingredients and Active Beauty increasedby 8.1% LFL*
• Double-digit growth in Active Beauty• Fragrance Ingredients experienced good sales
momentum
FY 2018

FY 2019* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2019 Full Year Results

24 January 2020

7

Divisional sales performance
Flavour Division
Asia Pacific growth of 6.4% LFL*
Flavour Division sales
in CHF million• Double-digit performance in Indonesia, Malaysia,Philippines, Thailand and Vietnam• Strong single-digit growth in China and India

3,404

EAME increased by 4.4% LFL*
• Double-digit growth in Africa and Middle East
driven by strong performance in Egypt, SouthAfrica, Nigeria and Morocco3,002• High single-digit growth in the mature markets ofthe Benelux, Italy and Spain+4.5%LFL*

North America decline of 1.6% LFL*
• Good performance of local and regionalcustomers• New wins and growth of existing business in
Savoury, Snacks and Beverages, offset by weakerperformance in Dairy
Latin America increased by 19.2% LFL*
• Strong performance across all markets andsegments

FY 2018

FY 2019* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2019 Full Year Results

24 January 20208Acquisition update2020 strategy in motion

2014

2016

2018

2019

Active Beauty

Naturals
IntegratedSolutions

Naturals

Active Beauty

Soliance

Centroflora Nutra

Spicetec

Expressions Parfumées

L&R Fragrances

Cosmetics business of AMSilk
Golden Frog

Naturalsdrom

Fragrances

2015

2017

Active Beauty

Natural flavours

Naturals
Health and well-being
Active Beauty

Vika

Albert VieilleInduchem

Naturex

Activ International

Natural flavours

Naturals
Aromatherapy

Fragrance Oils

L&R Fragrances
Ungerer*

Speciality Ingredients
Flavours & Fragrances
Cosmetics business of Indena*

Active Beauty* Acquisition not yet complete

Approximately CHF 1.5 billion of incremental revenues
CHF 3.6 billion invested in acquisitions
2019 Full Year Results

24 January 2020

9Acquisition focus
Outstanding portfolio aligned with market trends
Naturals

Spicetec
Activ International
Vika
Centroflora Nutra
Naturex
Albert Vieille
Golden Frog
UngererIndenaActiveBeautySoliance
Induchem
Naturex
AMSilkIndenaLocal and regionalcustomers

Aligned withmarket trends
and our strategic
priorities

Naturexdrom
Fragrance Oils
Ungerer

IntegratedSolutions

Spicetec
Vika
Activ International

Ingredients
Ungerer
Albert Vieille2019 Full Year Results

24 January 2020

10Givaudan Business Solutions
Implementation well advanced - on track to finalise in 2020
EAME
Transition completed

NOAM
Transition completed

LATAM
Transition completed
APAC
Mid-way through APAC
transition
On track to finalise transition
during H1 2020

GBS Delivery Centres working effectively within the broader Givaudan organisation
Financial benefits being delivered in line with the plan2019 Full Year Results

24 January 202011

Tom Hallam
Chief Financial Officer

2019 Full Year Results

24 January 202012

2019 Full Year Results
Financial highlights• Sales of CHF 6,203 million, up 5.8% on a like-for-like* basis and 12.2%in Swiss francs• EBITDA of CHF 1,275 million compared to CHF 1,145 million in 2018, anincrease of 11.4%• Reported EBITDA margin of 20.6% compared to 20.7% in 2018, with theunderlying margin at 21.5% versus 21.0% in 2018
• Net income of CHF 702 million, up 6.0% year-on-year• Operating cash flow of CHF 1,136 million, an increase of 24.0%; freecash flow of 12.7% of sales* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2019 Full Year Results

24 January 202013

2019 Full Year Results
Exchange rate development

3%

2%

1%

1%-2%2%-2%-3%-6%JPY

USD

GBP

EUR

SGD

BRL

CNYMXNIDR

FY 2019

0.91

0.99

1.27

1.11

0.73

0.25

0.14

0.05

0.70

FY 2018

0.88

0.98

1.30

1.15

0.72

0.27

0.15

0.05

0.69

2019 Full Year Results

24 January 202014

Operating performanceGroup: Improved underlying profitability
40.8%

Sales of CHF 6,203 million, an increase of5.8% on a like-for-like* basis and 12.2% in
Swiss francs

Gross margin in %1,275

EBITDAin CHF million

Gross margin of 40.8%, compared to42.1% in 2018. Strong cost discipline andproductivity gains were offset by:

42.1%• The dilution impact created by the pricing
actions to compensate for higher input costs;
and1,145• Naturex’s current margin level

EBITDA of CHF 1,275 million compared toCHF 1,145 million in 2018
EBITDA margin of 20.6% compared to
20.7% in 2018, with the underlying margin
at 21.5% versus 21.0% in 2018

FY 2018

As %of sales

FY 2019

20.7%

EBITDA margin

20.6%

21.0%

Underlying
EBITDA margin

21.5%* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2019 Full Year Results

24 January 2020

15Operating performance
Fragrance Division
Sales of CHF 2,799 million, an increase of
7.3% on a like-for-like* basis and 10.9% inSwiss francs

508

EBITDAin CHF million

555

+9.4%

EBITDA of CHF 555 million versus CHF 508
million in 2018, an increase of 9.4%, driven
by the strong sales growth and thecontribution from the acquired companies
EBITDA margin of 19.8% compared to20.1% in 2018, with the underlying EBITDA
margin improving to 21.3% in 2019
compared to 20.7% in 2018

FY 2018

As %of sales

FY 2019

20.1%EBITDA margin

19.8%

20.7%

Underlying
EBITDA margin

21.3%* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2019 Full Year Results

24 January 202016

Operating performance
Flavour Division
Sales of CHF 3,404 million, an increase of
4.5% on a like-for-like* basis and 13.4% in
Swiss francs

720637

EBITDAin CHF million+12.9%EBITDA of CHF 720 million, compared toCHF 637 million in 2018, driven by the
integration of acquired companies, as wellas continuing productivity gains and costdiscipline
EBITDA margin of 21.1%, compared to21.2% in 2018. The underyling margin was
21.6% in 2019 compared to 21.2% in 2018

FY 2018

As %of sales

FY 2019

21.2%

EBITDA margin

21.1%

21.2%

Underlying
EBITDA margin

21.6%* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2019 Full Year Results

24 January 202017

Amortisation of intangible assets
Updated to include all recent acquisitions
Total annual amortisation charge (in million CHF, estimated)
161

38

170

165

40

109

125

100

404085

92

4087

4075
69

212121171717462020E2021E2022E

2019

Pre Quest

Quest

2019 Full Year Results

60

2023E

Other acquisitions

2024E
Other IT

24 January 202018

Net income
Solid increase of 6.0% in 2019
Income before tax of CHF 808 million,increased from CHF 772 million in 2018,
driven by increased business and stable
non operating expenses, despite higher
interest charges related to the recentacquisitions

Net income
in CHF million
702663

Net income of CHF 702 million, or 11.3%
of sales versus CHF 663 million, or 12.0%
in 2018
Effective tax rate of 13%, compared to14% in 2018
Basic EPS of CHF 76.17 per share, versus
CHF 71.92 in 2018
FY 2018
71.92

2019 Full Year Results

FY 2019

BasicEPS (CHF)

76.17

24 January 202019

Free cash flow
Strong increase in operating cash flow
Free cash flow of CHF 787 million,
compared to CHF 703 million in 2018.
FCF is 12.7% of sales compared to 12.7%
in 2018

Free cash flow
in CHF million

787

703

Operating cash flow of CHF 1,136 million,
an increase of 24.0% versus 2018
Total net investments of CHF 246 million,
or 4.0% of sales, compared to 3.3% ofsales in 2018. Excluding the remaining
impact of the ZIC transaction, the total net
investments would have been 5.1% ofsales in 2019
Working capital of 24.0% of sales
compared to 26.3% in 2018, mainly as aresult of the lower inventory levels in bothdivisions

FY 2018
12.7%

2019 Full Year Results

FY 2019

as %of sales

12.7%

24 January 202020

Dividend per share
Increasing 3.3% YoYFree cash flow of CHF 8.6 billion generated over the past 20 years,
CHF 4,770 million of cash flow returned to shareholders as dividends*
and CHF 504 million (net) through share buy-backs

47

36

15.4

6.5

7

18.8 19.5
16.3 17.6

289

2001

2002

2003

2004

60

62*

720
604

703
597

594

2016

2017

512

262

203

2000

58

437

390
295

56

787
662

549

273

54

20 20.6 21.5 22

8.1

340

50

2005

2006

157

145

2007

2008

117
2009

2010

Free Cash Flow

2011

2012

2013

2014

2015

2018

2019

Dividend* Subject to approval of shareholders at the AGM in March 20202019 Full Year Results

24 January 202021

Balanced debt structureLong duration maturity profile

1,064
in million CHF
806
745

452

407
293
226
149

ST < 1 Y

1-2 Y

2-3 Y

3-4 Y

2019 Full Year Results

4-5 Y

5-6 Y

8-14 Y

C & CE

24 January 2020

22Leverage ratio
Increase related to IFRS 16 and 2019 acquisitions
Leverage ratio of 47% as at December 2019 compared to 41% in 2018. The increase is driven by theacquisitions undertaken during 2019 and the increase in lease liabilities, due to the adoption of IFRS 16Leases. Excluding the impact IFRS 16, which added CHF 441 million to the debt of the Group, theleverage ratio would have been 44%.
47%
41%

28%

29%
24%
18%

Dec '10

Dec '11

Dec '12

Dec '13

17%

Dec '142019 Full Year Results

19%

21%

15%

Dec '15

Dec '16

Dec '17

Dec '18

24 January 2020

Dec '1923

Gilles Andrier
Chief Executive Officer

2019 Full Year Results

24 January 202024

2020 Outlook

2020 Outlook
Key themes

Growth Outlook

Raw Materials

Strategy• Continued confidence in our
growth strategies• Raw materials outlook for2020 stable at current levels• Focus on delivering 2020
guidance• Local and regional customers
continuing to be a strong
growth driver• Enhanced position in citrus
through acquisition ofUngerer• Continued integration ofacquired companies on to
Givaudan’s operating platform• High growth markets• Integration costs of ~CHF 50
million in 2020

• Capitalise on expanded
portfolio opportunities• Developing the strategic
roadmap for 2021-2025, in linewith Givaudan’s purpose

2019 Full Year Results

24 January 202026

Responsible growth.
Shared success.
Growing withour customers

Deliveringwith excellence

4-5%

12-17%

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

5.1%

12.5%

in 2016-2019

Partnering forshared success

Partnerof choicein 2016-2019* Over a five-year period by 2020

Creating additional value through acquisitions

Intention to maintain current dividend practiceas part of this ambition
2019 Full Year Results

24 January 2020

27

Q&A

2019 Full Year Results

24 January 202028

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 © 2020 Givaudan SA. All rights reserved.

2019 Full Year Results

24 January 202029