2020 Full Year Results
Excellent Financial Performance2020 Strategy delivered
29/01/2021

Gilles Andrier
Chief Executive Officer

2020 Full year results
Performance highlights• Sales of CHF 6.3 billion, up 4.0% on a like-for-like* basis and 1.9% in Swiss francs• EBITDA of CHF 1,397 million, an increase of 9.6%; comparable EBITDA margin of 22.8% up
from 21.5% in 2019
• Free cash flow of CHF 811 million or 12.8% of sales• Proposed dividend of CHF 64.00 per share, up 3.2% year-on-year• Successful delivery of 2020 guidance; Over the five year period 2016-2020:
 Average like-for-like sales growth of 4.9%
 Average free cash flow of 12.6%“I am very pleased that in an unprecedented environment related to COVID-19, we have been able todeliver such a strong financial performance in 2020, as well as successfully delivering on all of ourambitious targets in relation to our 2016-2020 strategy.”* Like-for-like: excludes the impact of currency, acquisitions and disposals
2020 Full year results investor conference

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Sales performance
Good growth in both divisions
in million CHF

6,322

2,924

Group

3,398

Fragrance &Beauty

Taste &Wellbeing% 2020 growth on LFL* basis

4.0%

5.4%

2.8%

% 2020 growth in CHF

1.9%

4.5%

-0.2%

* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals
2020 Full year results investor conference

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Sales portfolio performance
Covid-19 impact analysis

Lower impacted business LFL* growth 2020

16%

Q2

Q3

Q4

FYGroup

7.5%

11.7%

5.6%

6.0%

7.7%

F&B

7.5%

12.7%

6.0%

6.6%

8.2%

T&W

7.6%

11.1%

5.4%

5.5%

7.4%

Higher impacted business LFL* growth 2020

15%84%

Q1

18%
85%

82%
Group

Fragrance &Beauty

Lower impact

Taste &Wellbeing

Higher impact

Q1

Q2

Q3

Q4

FYGroup-4.4%-39.0%

-9.7%

-4.1%

-14.7%

F&B

1.9%-35.3%

-1.9%

12.2%

-6.0%

T&W

-10.8%-42.2%-18.2%-19.1%-23.0%* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals** Portfolio structure based on 2019 actual results

2020 Full year results investor conference

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Sales evolution by market
Strong performance from high growth markets
in million CHF

3,544

3,646
2,659

FY 2019

FY 2020

Mature% of total sales% 2020 growth on LFL* basis

57%

58%
1.5%

FY 2019

2,676

FY 2020High growth
43%

42%

7.4%

* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals
2020 Full year results investor conference

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Sales evolution by region
All regions contributing to the growth

2,233

in million CHF

1,630 1,602

1,641

2,278

1,768699 674

FY2019FY2020FY2019FY2020FY2019FY2020FY2019

FY2020LATAMAPACNOAM

EAME% 2020 growth on LFL* basis

17.6%

0.6%

5.7%

1.1%

% 2020 growth in CHF

-2.3%

-1.9%

7.2%

2.1%

* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals
2020 Full year results investor conference

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Sales performance
Fragrance & Beauty
sales

Fine Fragrance decreased 6.0% LFL*in CHF million• Strong impact of COVID-19 due to restricted retail and travel
retail activity in major fine fragrance markets• Good growth of 4.2% in the second half of 2020, compared tothe same period in 2019

2,9242,799• Specialty retail, e-commerce & direct selling channels
supported improved second half results

Consumer Products grew 9.2% LFL*

• Strong sales growth against comparable growth of 7.8% in

+5.4%

2019

• Increased consumption of household, health and personal careproducts

LFL growth• Growth in both high growth and mature markets and across all
customer groups and regions

Fragrance Ingredients and Active Beauty increased by
2.5% LFL*• Active Beauty performed well in difficult market conditions
related to COVID-19 and delivered low single digit growth

FY 2019

FY 2020* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals
2020 Full year results investor conference

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Sales performance
Taste & Wellbeing
sales

Asia Pacific decreased 1.0% LFL*

in CHF million• Double-digit growth in China was offset by Indonesia andIndia, which were strongly impacted by COVID-19• Weaker performance in mature markets of Japan andOceania, also related to COVID-19

3,398

3,404

EAME increased 2.0% LFL*
• Double-digit growth in Russia, Turkey, Maghreb and Egypt• In the mature markets good single-digit growth in France,
Germany, Benelux and Northern Europe+2.8%

North America increased 4.3% LFL*
• Good performance in all customer segments and inBeverages, Immunity Products, Snacks and Sweet Goods

LFL growth

Latin America increased 10.7% LFL*
• Double-digit growth in Brazil and Argentina• Growth driven by the segments of Dairy, Beverages,Savoury and Sweet Goods
FY 2019

FY 2020* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals
2020 Full year results investor conference

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COVID-19
Givaudan’s focus throughout the crisis

1.

Protecting andsupporting ouremployees, be it
on-site or thoseworking from home2.

Meeting the demands ofour customers,
particularly for those
products which support
consumers throughout
the pandemic

2020 Full year results investor conference

3.

Taking care of thecommunities inwhich we operate

29/01/2021

Tom Hallam
Chief Financial Officer

2020 Full year results
Performance highlights• Sales of CHF 6,322 million, up 4.0% on a like-for-like* basis and 1.9% in Swiss francs• EBITDA of CHF 1,397 million compared to CHF 1,275 million in 2019, an increase of 9.6%
• Reported EBITDA margin of 22.1% compared to 20.6% in 2019, with the underlying margin
at 22.8% versus 21.5% in 2019
• Net income of CHF 743 million, up 5.8% year-on-year• Operating cash flow of CHF 1,133 million; free cash flow of 12.8% of sales• Net debt to EBITDA of 2.9x, the same level as 2019 and down from 3.4x in June 2020* like-for-like excludes the impact of currency, acquisitions and disposals
2020 Full year results investor conference

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2020 Full year results
Exchange rate development
-3.5%

-5.7%

-4.8%

-3.7%

-5.8%

-6.7%

-8.4%
-14.8%-27.8%

JPY

USD

GBP

EURSGD

BRL

CNY

MXN

IDR

FY 2020

0.88

0.94

1.21

1.07

0.68

0.18

0.14

0.04

0.64

FY 2019

0.91

0.99

1.27

1.11

0.73

0.25

0.14

0.05

0.70

2020 Full year results investor conference

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Operating performance

40.8% Gross margin 42.1%

Sales of CHF 6,322 million, an increase of 4.0% on a
like-for-like basis* and 1.9% in Swiss francs

in %Gross margin of 42.1%, compared to 40.8% in 2019, asa result of continued productivity gains, improved
contribution of acquired companies, GBS savings and costdiscipline

1,397
1,275

EBITDA of CHF 1,397 million compared to CHF 1,275
million in 2019. Acquisition and restructuring costs of CHF
39 million, compared to CHF 25 million in 2019. Impact ofcosts for GBS project of CHF 6 million in 2020, comparedwith CHF 31 million in 2019

in CHF million

EBITDA margin of 22.1% compared to 20.6% in 2019,with the underlying margin at 22.8% versus 21.5% in2019* Like-for-like excludes the impact of currency, acquisitions and disposals

EBITDAFY 2019
As %of sales

2020 Full year results investor conference

FY 2020

20.6%

EBITDA margin

22.1%

21.5%

Underlying
EBITDA margin

22.8%
29/01/2021

Operating performance
Fragrance & Beauty

555

Sales of CHF 2,924 million, an increase of 5.4% on a likefor-like basis* and 4.5% in Swiss francs
EBITDA of CHF 677 million, increased from CHF 555
million in 2019

EBITDAin CHF million

677
2,924

2,799

GBS costs of CHF 6 million, compared with CHF 31 million
in 2019 and acquisition and restructuring costs of CHF 7million, compared to CHF 11 million in 2019

Salesin CHF million+5.4%
LFL growth

EBITDA margin of 23.2% compared to 19.8% in 2019,with the underlying EBITDA margin at 23.6% versus
21.3% in 2019.
The increase was mainly driven by higher sales, thecontribution and synergies of the recent acquisitions, aswell as reduced operating expenses

FY 2019
As %of sales

2020 Full year results investor conference

FY 2020

19.8%

EBITDA margin

23.2%21.3%

Underlying
EBITDA margin

23.6%
29/01/2021

Operating performance
Taste & Wellbeing

720

Sales of CHF 3,398 million, an increase of 2.8% on alike-for-like basis* and a decrease of 0.2% in Swissfrancs

EBITDAin CHF million

3,404

EBITDA of CHF 720 million, flat compared to last year

720
3,398

Sales

Acquisition and restructuring costs of CHF 32 million,
compared to CHF 14 million in 2019, largely related tothe integration of the recently acquired companies andongoing optimisation of the footprintin CHF million+2.8%
LFL growthEBITDA margin of 21.2% compared to 21.1% in
2019. The underlying EBITDA margin was 22.1%
versus 21.6% in 2019
FY 2019
As %of sales
2020 Full year results investor conference

FY 2020

21.1%

EBITDA margin

21.2%

21.6%

Underlying
EBITDA margin

22.1%
29/01/2021

Amortisation of intangible assets
Total annual amortisation charge (in million CHF, estimated)
187

188

3740

148

133

124

121

40
40
112

40

40

110

98
93
21211717

2020

84

81

462021E

2022E
Pre Quest

2023E
Quest

Other acquisitions

2024E

2025E
Other ITUpdated to include all recent acquisitions2020 Full year results investor conference

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Net income
11.8% of sales
Net Incomein CHF million

Income before tax of CHF 876 million compared toCHF 808 million in 2019
Net income of CHF 743 million, or 11.8% of sales, versus
CHF 702 million, or 11.3% of sales in 2019

743

702

Effective tax rate of 15%, compared to 13% in 2019,
temporarily higher due to the impact of the recently
acquired companies
Basic EPS of CHF 80.59 per share, versus CHF 76.17 in2019

FY 201976.17
2020 Full year results investor conference

FY 2020
Basic EPS (CHF)

80.59
29/01/2021

Free cash flow
Sustained underlying performance
Free cash flow of CHF 811 million, compared to CHF 787
million in 2019. Free cash flow is 12.8% of sales
compared to 12.7% in 2019.
Average Free cash flow over the 2016-2020 strategy
period of 12.6%

Free cash flow
in CHF million

787

811

Operating cash flow of CHF 1,133 million, compared toCHF 1,136 million in 2019
Total net investments of CHF 217 million, or 3.4% ofsales, as the Group continues to invest in growth andinformation systems. The net investments in 2019 were4% of sales, or 5.1% excluding the impact of the ZIC
transaction
Net Working capital of 24.4% of sales compared to24.0% in 20192020 Full year results investor conference

FY 2019

12.7%FY 2020
As % of sales

12.8%
29/01/2021

Dividend per share
Increasing 3.2% over 2019

36
15.4
6.5

7

16.3

17.6

20

20.6

21.5

662

289

203

2002

2003

2004

5456

58

60

62

64*

787

811

720
604

703
597

594

2016

2017

512
437

390
295

50

22549

273

2001

19.5

8.1

340

2000

18.8

47

2005

* Subject to approval of shareholders at the AGM in March 20212622006

1571452007

2008

11720092010

Free Cash Flow

2011

2012

2013

2014

2015

2018

2019Dividend

2020 Full year results investor conference

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2020

Balanced debt structure
Debt maturities and average borrowing rates
In April 2020 Givaudan issued two new bonds for a total of EUR 1,000 million carrying respectively a maturity of 7years (EUR 500M) and 12 years (EUR 500M). In November 2020 Givaudan issued a Swiss franc bond of CHF 150
million with an 8 year maturity.
The weighted average effective interest rate for the Group is 1.49%.
2.00%

1.18%

861809

1.74%
411

0.59%
2.30 %
161

Cash & Cash
Equivalents

ST < 1 Y

222

1-2 Y

1.10%

1.63%

550

538

392
3.52%

0.15%

154

150

2-3 Y

3-4 Y

4-5 Y

6-7 Y

7-8 Y

0.63%
200

9-10 Y

10-11 Y

11-12 Y

Debt in CHF million / Average interest rates in %2020 Full year results investor conference

29/01/2021

Leverage ratio and Net debt to EBITDA
Increase related to the Ungerer acquisition
Leverage ratio of 50% as at December 2020 compared to 47% in 2019. The increase is largely driven by currency
impacts on the CTA in Equity and the acquisition of Ungerer in February 2020.
The net debt to EBITDA as at December 2020 was 2.9x, flat compared to December 2019 and down from 3.4x in June
2020.
50%
47%

41%

28%

29%
24%

Dec '10

Dec '11

Dec '1218%

17%

Dec '13

Dec '14

19%

21%

15%

Dec '15

Dec '162020 Full year results investor conference

Dec '17

Dec '18

Dec '1929/01/2021

Dec '20

Gilles Andrier
Chief Executive Officer

Strategy 2020
Responsible growth. Shared success.
Growing withour customers

Delivering withexcellence

4-5%

12-17%

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

4.9%

12.6%

2016-2020

2016-2020

Partnering forshared success

Partnerof choice

Creating additional
value through 16 acquisitions
since 2014

CHF 1.5 bn

annualised

revenue contribution from companies
acquired since 2014

Intention to maintain current
dividend practice as part ofthis ambition• Dividend increased y.o.y every year
since Givaudan was listed in 2000

* Over the five-year period 2016-2020

2020 Full year results investor conference

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Value creation through acquisitions
Expanding our portfolio
Local and regional customers
Naturex
Expressions Parfuméesdrom
Fragrance Oils
Ungerer

Naturals

Spicetec
Activ International
Vika
Centroflora Nutra
Naturex
Albert Vieille
Golden Frog
UngererIndenaActive Beauty

Aligned withmarket trends andour strategic
priorities

Soliance
Induchem
Naturex
AMSilkIndenaAlderysIntegrated Solutions
Spicetec
Vika
Activ International

Ingredients
Ungerer
Albert Vieille2020 Full year results investor conference

29/01/2021

Strategy 2020 Successfully Delivered
Highlights of key achievements 2016-2020
Growing with our customers

Highgrowthmarkets

Health andwell-being

Consumerpreferredproducts

Integratedsolutions

Expanding product andcustomer portfolio for growth
Doubling sales in Naturals toclose to CHF 2 billion
Achieving No. 1 position in Fine
Fragrance
Building CHF 100 million
businesses in Active Beauty and in
Plant based proteins
Local & Regional customers
accounting for 54% of Group
Sales

Delivering with excellence

Excellence inexecution

Successful implementation ofGivaudan Business Solutions (GBS)with benefits of CHF 60 million perannum
Integration of acquired companies& improving financial
performance
Establishment of the Givaudan
Digital Factory in Paris
Earned key sustainability
recognitions, including CDPleadership scores & EcoVadis Gold
StatusPartnering for shared success

Innovators

Suppliers

PeopleCommunities

Strengthening global innovation
ecosystem with opening of new
flagship Innovation Centre in Zurich
Doubling of sales from innovation
linked to external collaborations
Launch of “Connect to win”
programme to accelerate innovationin partnership with suppliers
Strong improvement in employee
engagement and in safety
performance

2021 Outlook
Summary of the Key themes

2021 Outlook

Focus on Operations

Key Initiatives• Confident in our capabilities and theimportant role that we play in the globalvalue chain for Food and Consumer
Products• Protecting and supporting all Givaudan
personnel• Continued integration of acquiredcompanies on to Givaudan’s operating
platform• Visibility remains short due to on-going
impacts related to the COVID-19
pandemic• Raw materials forecast to increase ~1% in
the first half of 2021, with remaining
uncertainty over the second half

• Focus on maintaining operations andsupply chain performance at high levels
to support our customers• Continued Cost discipline throughout
the business2020 Full year results investor conference• Integration costs of ~CHF 45 million in2021• Starting the implementation of the 2025
strategy

29/01/2021

Strategy 2025
Committed to Growth, with Purpose

Creations
We create inspiring solutions
for happier, healthier lives

NatureWe show our love for nature
through impactful actions

PeopleWe nurture a place where we
all love to be and growCommunities
We bring benefits to allcommunities that work with us

Excellence, Innovation & Simplicity - in everything we do

4-5% GROWTHPURPOSE LINKED TARGETS>12% FCF

Strategy 2025
Performance commitments
Sales growth

Free cash flow

Purpose commitments

4.0 – 5.0%

>12% of Sales

Purposelinked targets

2021 – 2025
Average Like for Like1 Sales Growth2021 – 2025
Average FCF2 as % of sales

2021 – 2025
Progress towards all publishedpurpose targets

1. Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period
2. Free Cash Flow (FCF) refers to operating cash flow after net investments, interest paid and lease payments

2020 Full year results investor conference

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Q&A2020 Full year results investor conference

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Follow us on social media@givaudan

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Disclaimer
No warranty and no liability: While Givaudan is making great efforts to include
accurate and up-to-date information, we make no representations or warranties,
expressed or implied, as to the accuracy or completeness of the information provided
on this presentation/handout and disclaim any liability for the 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 this information
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 maydiffer significantly from those presented.
Copyright © 2021 Givaudan SA. All rights reserved.

2020 Full year results investor conference

29/01/2021