2016 Half Year Results
Strong sales growth - sustained high levelprofitability
18 July 2016

Gilles Andrier
Chief Executive Officer

2016 Half Year Results Presentation

18 July 2016

2

2016 Half Year Results
Financial highlights• Sales of CHF 2.3 billion, up 6.2% on a like-for-like* basis• Project pipeline and win rates sustained at a high level• EBITDA of CHF 638 million in 2016
• EBITDA margin improved to 27.3% from 25.9% in 2015
• Net income of CHF 368 million, up 7.6% year on year
• Free cash flow of 7.4% of sales, compared to 11.4% in 2015

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

Our 2016 six month results are a convincing demonstration of the continued
value we bring to our customers, across all regions and segments
2016 Half Year Results Presentation

18 July 20163

2016 Half Year Results
Sales performance: strong performance
In million CHF

2,334

1,132

1,202

Group

Fragrances

Flavours% 2016 growth on LFL* basis

6.2%

9.7%

3.0%

% 2016 growth in CHF

6.9%

10.7%

3.5%

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

2016 Half Year Results Presentation

18 July 2016

42016 Half Year Results
Sales evolution by market: Underlying presence in high growth markets
continues to increase, offset by currency weakness
In million CHF
1,267

1,186

1,067

998

HY2015

HY2016

Mature% of total sales% 2016 growth on LFL* basis

54%

HY2015

HY2016

High Growth
54%

2.3%

46%

46%

10.7%

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

2016 Half Year Results Presentation

18 July 20165

2016 Half Year Results
Sales evolution by region
In million CHF

786821

669
604
548

508

% 2016 growth on LFL* basis286296

HY2015

HY2016

HY2015

HY2016

HY2015

HY2016

HY2015

HY2016

LATAM

APAC

NAEAME

18.1%

8.7%

2.9%

2.0%

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

2016 Half Year Results Presentation

18 July 20166

2016 Half Year Results
Fragrance Division: Operational Performance
Sales and EBITDA

Fine Fragrances grew 11.1% LFL

CHF million

Double-digit growth in North America andsolid performance in Latin America
offsetting lower sales in EAME and AsiaConsumer Products grew 10.2% LFL+10.7%

Double-digit growth in high growth markets
with all customer groups and segments
contributing to the good performance
Local and regional customers demonstrated
good growth across all regions

Sales

1,023

EBITDA

244

1,132

Double-digit growth in fabric care,complemented by good growth in homecare, oral care and personal care.
Fragrance Ingredients and Active Beauty
grew 5.2% LFL
Strong growth of Fragrance Ingredients inEurope and Asia

351
+43.9%

HY 2015

Induchem contributed CHF 13 million sales
As %of sales

2016 Half Year Results Presentation

25.0%

HY 2016
Underlying
EBITDA margin26.2%

18 July 201672016 Half Year Results
Flavour Division: Operational Performance
Strong growth in the high growthmarkets of Argentina and Brazil, withDairy, Savoury and Snacks
demonstrating the strongest
segmental performance

Sales and EBITDA
CHF million+3.5%

Asia Pacific increased 4.7% LFL driven byIndia and Indonesia, Thailand and Vietnam
Europe, Africa and Middle East declined
0.7% LFL as a result of weakerperformance in France, Germany and GreatBritain. Gains in Eastern Europe were offset
by weak demand in Russia.

1,202

1,161
Sales

North America grew 0.4% LFL against highcomparables
Latin America increased 16.7% LFL driven
by strong growth in Argentina, Brazil andColombia

EBITDA322(10.9)%

HY 2015
As %of sales

2016 Half Year Results Presentation

25.0%

287
HY 2016

Underlying
EBITDA margin23.9%

18 July 20168

Matthias Währen
Chief Financial Officer

2016 Half Year Results Presentation

18 July 20169

2016 Half Year ResultsHighlights• Sales CHF 2.3 billion, up 6.2% on a like-for-like basis• EBITDA increased to CHF 638 million• EBITDA margin improved to 27.3%• Net income of CHF 368 million, up 7.6% year on year
• Free cash flow of CHF 174 million, 7.4% of sales• Net debt of CHF 986 million, leverage at 21%

2016 Half Year Results Presentation

18 July 201610

2016 Half Year Results
Exchange rate development: Results largely unaffected by currencies,
despite the continued currency swings

11%

4%

4%
2%

0%
-1%

-3%

-11%
-17%
JPY

USD

GBP

EUR

SGD

BRL

CNY

MXN

IDR

HY 2016

0.88

0.99

1.41

1.10

0.71

0.27

0.15

0.55

0.73

HY 2015

0.79

0.95

1.45

1.060.70

0.32

0.15

0.620.73

2016 Half Year Results Presentation

18 July 2016112016 Half Year Results
Operating performance: Sustained high level profitability
Grossmargin

Sales of CHF 2,334 million(2015: CHF 2,184 million)
Gross margin of 46.8% compared to 46.5%
in 2015, strong volumes and good control ofexpenses

46.5%

46.8%

EBITDA
(in million Swiss francs)

EBITDA of CHF 638 million, up 12.8%,
driven by strong cost control. One off non
cash gain of CHF 55 million in 2016,
compared to net one-off gain of CHF 20million in 2015

638566EBITDA margin of 27.3%, up from 25.9%
in 2015
Operating income of CHF 500 million, up
16.8% from 2015, driven by higher EBITDA
and flat amortisation of intangible charge

HY 2015
25.9%

As %of sales
2016 Half Year Results Presentation

25.0%

HY 2016
EBITDA margin
Underlying
EBITDA margin

27.3%

25.0%
18 July 201612

2016 Half Year Results
Financing costs and other financial expenses
Other financial expenses (net)

Financing costs(in CHF million)(in CHF million)

3127

1813

HY 2015

HY 2016

HY 2015

HY 2016

Other Financial Income and Expenses are higher than in 2015, driven by increased volatility in foreign exchange
markets, which has lead to a significant increase in hedging costs and losses in currencies which could not behedged, most notably the Argentinian Peso.

2016 Half Year Results Presentation

18 July 201613

2016 Half Year Results
Net income: increasing by 8% as a result of continued strong
operating performance

Income before tax of CHF 455 million, up from
CHF 384 million in 2015, driven by:• Improved EBITDA

Net income
In CHF million• Flat financial expenses

368

Effective tax rate of 19%, same as underlying
tax rate in June 2015
Net income of CHF 368 million, or 15.8% of sales,
versus 15.7% in 2015
Basic EPS of CHF 40.00,versus CHF 37.15 in 2015

342

BasicEPS(CHF)
2016 Half Year Results Presentation

HY 2015

HY 2016

37.15

40.00

18 July 201614

2016 Half Year Results
Free cash flow: strong underlying performance
Operating cash flow of CHF 237 million versus
CHF 341 million in 2015
Working capital as a % of sales up slightly
versus HY 2015, as well as in absolute terms
given strong sales

Free cash flow
In CHF million248

Total investments of CHF 45 million, or 1.9%of sales, compared to 3.4% in 2015174

As %of sales
2016 Half Year Results Presentation

HY 2015

HY 2016

11.4%

7.4%

18 July 201615

2016 Half Year Results
Conservative debt profile
April 2016:

Reimbursement of USD 55 million US private placement

In million CHF

305

299
260
209

148

146

5-6 Y

6-7 Y

100

39

ST < 1 Y

1-2 Y

2-3 Y

3-4 Y

4-5 Y

2016 Half Year Results Presentation

7-9 Y

C & CE

18 July 201616

2016 Half Year Results
Leverage ratio: Continuing to de-leverage on a yearly basis• Leverage ratio of 21% as at June 2016, up versus December 2015 as a result of the dividend payment in Q1 2016
• Intention to maintain a medium term leverage ratio target below 25%• Company will exclude from equity definition any impact arising from changes in IAS 19

26%
24%

24%

23%
21%

18%

17%
15%

Dec '12Jun '13

Dec '13

Jun '14

Dec '142016 Half Year Results Presentation

Jun '15

Dec '15

Jun '1618 July 201617

2016 Half Year Results
Financial summary• Sales of CHF 2.3 billion, an increase of 6.2% on a like-for-like basis, briefs
pipeline and win rate sustained at a high level• Strong set of financial metrics• Sustaining the EBITDA margin• Net income of CHF 368 million, up 7.6% versus 2015
• Solid cash flow and strong balance sheet• Net debt CHF 986 million, leverage ratio 21%

2016 Half Year Results Presentation

18 July 201618

Gilles Andrier
Chief Executive Officer

2016 Half Year Results Presentation

18 July 201619

Responsible growth.
Shared success.

4–5%

12–17%

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

Partnerof choice* Over a five-year period by 2020

Intention to maintain current dividend practice as part ofthis ambition
2016 Half Year Results Presentation

18 July 2016

20

Q&A

2016 Half Year Results Presentation

18 July 201621

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 Givaudan SA. All rights reserved.

2016 Half Year Results Presentation

22