2018 Half year results
Strong recovery in high growth markets
19 July 2018

Gilles Andrier
Chief Executive Officer

2018 Half Year Results Presentation

19 July 20182

2018 Half year results
Performance highlights• Sales of CHF 2,674 million, up 5.6% on a like-for-like basis
and 7.7% in Swiss francs• Project pipeline and win rates sustained at a high level• Strategic focus areas and acquired businesses strongly
contributing to growth• EBITDA of CHF 601 million in 2018
• EBITDA margin of 22.5%, with strong underlying businessperformance• Free cash flow of 4.2% of sales, compared to 5.3% in 2017
• Givaudan Business Solutions delivering first benefits• Naturex acquisition progressing as planned* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2018 Half Year Results Presentation

19 July 20183

2018 Sales performance
Strategic focus areas delivering in both divisions
In million CHF
2,674

1,451
1,223

Group

Fragrances

Flavours% 2018 growth on LFL* basis

5.6%

6.5%

4.9%

% 2018 growth in CHF

7.7%

7.5%

7.8%

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

2018 Half Year Results Presentation

19 July 2018

4

Sales evolution by market
Strong recovery in high growth markets
In million CHF

1,531

1,415

1,068

HY2017

HY2018Mature% of total sales% 2018 growth on LFL* basis

57%

HY2018High Growth
57%

4.0%

HY2017

1,143

43%

43%
7.8%

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

2018 Half Year Results Presentation

19 July 2018

5

Sales evolution by region
Good growth achieved across all geographies
In million CHF

971832665% 2018 growth on LFL* basis

300308HY2017

HY2018HY2017712

HY2018686683

HY2017

HY2018HY2017

HY2018LATAMAPACNAEAME

10.8%

7.1%

1.9%

5.6%

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

2018 Half Year Results Presentation

19 July 2018

6

Divisional sales performance
Fragrance Division
Fine Fragrance increased 15.6% LFL*

Fragrance Division sales
in CHF million• New business wins across all customer
groups combined with volume growth on
established business at key accounts

1,223

Consumer Products grew 3.9% LFL

1,137• Growth delivered in both high growthand mature markets and across all
customer groups+6.5%

Fragrance Ingredients and Active Beauty
grew 8.2% LFL• Active Beauty sales driven by strong
performance of local and regionalcustomers• Good growth in Fragrance Ingredientscompared with 2017

HY 2017

HY 2018* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2018 Half Year Results Presentation

19 July 20187

Divisional sales performance
Flavour Division
Naturals, Health and Well-being, IntegratedSolutions and Targeted Customers contributed
positively to the overall performance

Flavour Division sales
in CHF million

1,451

Asia Pacific grew 7.0% LFL*
• Double-digit growth in key markets of China andIndia, as well as in Singapore

1,346

EAME increased 5.0% LFL• Double-digit growth in UK & Ireland, Belgium,Switzerland and Sweden+4.9%• Good growth in Central and Eastern Europe
North America grew 1.3% LFL• Continued good performance against strong prioryear comparable growth of 8.9%
Latin America increased 11.7% LFL• Double digit-growth in Brazil, Argentina, Mexicoand Colombia

HY 2017

HY 2018* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2018 Half Year Results Presentation

19 July 20188Acquisition update2020 Strategy in motion

2014

2016

2018

Active Beauty

Naturals
IntegratedSolutions

NaturalsSoliance

Centroflora Nutra

Spicetec

Expressions
Parfumées

L&R Fragrances

2015

2017

Active Beauty

Natural flavours

Induchem

Activ International

Naturex*

Naturals
H&W
Active Beauty

Approx.
CHF 1 billion ofincremental
revenues**
CHF 2.5 billion
invested inacquisitions

Vika B.V.

Natural flavours* Naturex acquisition not yet completed** Proforma 2018, including Naturex

In both divisions, our acquisitions are fully aligned with our 2020 strategic priorities:
Naturals, Health & Well-being, Active Beauty, Integrated Solutions, local & regional customers
2018 Half Year Results Presentation

19 July 20189

Naturex acquisition update
Compelling transaction rationale and strategic fit
Fits perfectly with Givaudan’s 2020 strategy

Relevance for global key trends
Health and well-being

Naturals‒ Naturals‒ Functional ingredients‒ Active Beauty

Activebeauty

Naturex contributes
to all dimensions ofour strategy

Customers
living longerand more
responsiblelives

Integratedsolutions

Consumer preferred products‒ Naturals‒ Natural colours and preservatives‒ Clean label

Significant progress made in the acquisition

Complementary
customer baseStrong strategic rationale creating a leading
position for Givaudan in natural ingredients2018 Half Year Results PresentationAll regulatory approvals have been secured and financing
for the transaction completedThe purchase of 40.5% of the shares of Naturex wascompleted on 4 June 2018

The mandatory cash tender offer was launched on
28 June 2018 and will continue until early SeptemberClosing of the transaction is expected in September 201810

Givaudan Business SolutionsImplementation in progress – First benefits in 2018
• GBS fully on track, with the previously communicated costs and benefits fully confirmed.
• First transitions successfully completed.
• GBS centres in Budapest, Buenos Aires and Kuala Lumpur fully operational.
• Europe fully transitioned by end of 2018; on track to complete by 2020.

2017
Q3
Q4

Q1

2018
Q2
Q3

Q4

Q1

2019
Q2
Q3

Q42020
Q1
Q2

Implementation
EuropeNOAMLATAMAPAC (Finance, Indirect
Purchasing, Master Data)

APAC

Global functional transformations

Today

2018 Half Year Results Presentation

19 July 201811Tom Hallam
Chief Financial Officer2018 Half Year Results Presentation

19 July 201812

2018 Half year results
Financial highlights• Sales of CHF 2,674 million, up 5.6% on a like-for-like* basis and 7.7% inSwiss Francs• EBITDA of CHF 601 million compared to CHF 597 million in 2017
• Reported EBITDA margin of 22.5% compared to 24.0% in 2017, with theunderlying EBITDA remaining strong at 23.4%• Income before tax of CHF 431 million versus CHF 451 million in 2017
• Effective Tax rate of 14% compared to 15% in 2017
• Net income of CHF 371 million, a decrease of 3.4% year-on-year• Free cash flow of CHF 113 million, 4.2% of sales compared to 5.3% in 2017

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

2018 Half Year Results Presentation

19 July 201813

2018 Half year results
Exchange rate development: Operating results largely unaffected bycurrencies, despite the continued currency swings

8%

7%

6%
3%
1%

0%

-3%
-5%-10%
JPY

USD

GBP

EUR

SGD

BRL

CNYMXNIDR

HY 2018

0.89

0.96

1.32

1.17

0.73

0.28

0.15

0.05

0.70

HY 20170.88

0.991.251.08

0.71

0.31

0.14

0.050.74

2018 Half Year Results Presentation

19 July 201814

Operating performanceGroup: Sustained good profitability
45.6%

Gross margin

44.2%

EBITDAin CHF million

Sales of CHF 2,674 million, an increaseof 5.6% on a like-for-like basis and7.7% in Swiss Francs601

597

Gross margin of 44.2%, compared to45.6% in 2017, as a result of thereduced gross margin in the Fragrance
division
EBITDA of CHF 601 million comparedto CHF 597 in 2017. Impact of costs
for GBS project of CHF 25 million in2018, compared with CHF 24 million in2017
EBITDA margin of 22.5% compared to24.0% in 2017, with the underlying
margin at 23.4% versus 25.0% in2017

HY 2017

As %of sales

2018 Half Year Results Presentation

HY 2018

24.0%

EBITDA margin

22.5%

25.0%

Underlying
EBITDA margin23.4%

19 July 201815

Operating performance
Fragrance Division
EBITDAin CHF million

Sales of CHF 1,223 million, an increaseof 6.5% on a like-for-like basis and7.5% in Swiss Francs

276(9.4)%

250

EBITDA of CHF 250 million, lower thanin 2017 largely due to the impact of asupply disruption of a major supplier offragrance ingredients impacting theindustry
GBS costs of CHF 25 million, comparedwith CHF 24 million in 2017
EBITDA margin of 20.4% compared to24.2% in 2017, with the underlying
EBITDA margin at 22.4% versus
26.3% in 2017

HY 2017

As %of sales

2018 Half Year Results Presentation

HY 2018

24.2%

EBITDA margin

20.4%

26.3%

Underlying
EBITDA margin22.4%

19 July 201816

Operating performance
Flavour Division
EBITDAin CHF million

Sales of CHF 1,451 million, an increaseof 4.9% on a like-for-like basis and7.8% in Swiss Francs

351
321

+9.3%

EBITDA of CHF 351 million, anincrease of 9.3%, driven by continued
productivity gains and cost discipline
EBITDA margin of 24.2%, compared to23.9% in 2017

HY 2017

As %of sales

2018 Half Year Results Presentation

HY 2018

23.9%

EBITDA margin

24.2%

23.9%

Underlying
EBITDA margin24.2%

19 July 201817

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

Total annual amortisation charge(in million CHF, estimated)
104111108404033

2117104103404030262521212121

1717171773• Quest (exc. Goodwill)• Other acquisitions:
Soliance, Induchem,Spicetec, Activ, Vika,
Centroflora Nutra andExpressions Parfumées(exc. Goodwill) mainly
related to customers,
name and productbrands, formulae andtechnologies• IT amortisation updated
to reflect size and scopeof projects (e.g.
regulatory engine)

40

26

2017

2018E
Pre Quest

2019EQuest

2018 Half Year Results Presentation

2020E
Other acquisitions

40

23
4
62021E
Other IT

2022E

19 July 201818

Net income
13.9% of sales
Income before tax of CHF 431 million,down from CHF 451 million in 2017, driven
by the increase in non-operating
expenses, as a result of higher foreign
currency losses, most notably in Argentina

Net income
in CHF million
384371

Net income of CHF 371 million, or 13.9%
of sales versus CHF 384 million or 15.5%
in 2017
Effective tax rate of 14%, compared to15% in 2017
Basic EPS of CHF 40.26 per share, versus
CHF 41.70 in 2017
HY 201741.70

2018 Half Year Results Presentation

HY 2018

BasicEPS (CHF)

40.26

19 July 201819

Free cash flow
Sustained underlying performance
Free cashflow of CHF 113 million,
compared to CHF 132 million in 2017,
FCF is 4.2% of sales compared to 5.3 %in 2017

Free cash flow
in CHF million
132

Operating cash flow of CHF 269 million,
the same level as in 2017113

Total net investments of CHF 143 million,
or 5.3% of sales, compared to 5.0% ofsales in 2017, as the Group continues toinvest in growth and innovation
Working capital of 28.7% of sales,remained relatively stable (27.4% in2017), despite temporarily higher levels ofinventory

HY 2017
5.3%

2018 Half Year Results Presentation

HY 2018as %of sales

4.2%

19 July 201820

Gilles Andrier
Chief Executive Officer

2018 Half Year Results Presentation

19 July 201821

2018 Outlook
Key themes

Growth outlook

Raw materials

GBS• Strong recovery in high growthmarkets in H1 2018, continuingfrom positive growth in thesecond half of 2017

• Raw materials increasing by
5-6%, as forecast and similar
outlook for 2019

• Implementation is wellunderway with previously
communicated costs and benefit
outlook fully confirmed• Local and regional customers
delivering strong growth• Areas of strategic focus(Naturals, Health and Wellbeing, Active Beauty andIntegrated Solutions) as well as
recent acquisitions all
contributing positively• Short term one off impact
due to key supplierdisruption, mainly affecting
H1 2018 in the Fragrance
Division• Delivering first financial benefits
in 2018 of CHF 20 million• Continuing to implement
price increases incollaboration with ourcustomers
2018 Half Year Results Presentation

19 July 2018

22Responsible growth.
Shared success.

Growing withour customers

Deliveringwith excellence

4-5%

12-17%

Average organic sales
growth*Average freecash 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 ambition2018 Half Year Results Presentation

19 July2018
2018
19 July23

Q&A2018 Half Year Results Presentation

19 July 201824

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 © 2016-2018 Givaudan SA. All rights reserved.

2018 Half Year Results Presentation

19 July 201825