2014 Full Year Results
Solid performance in a challenging environment
29 January 2015

Gilles Andrier
Chief Executive Officer

2014 Full Year Results Presentation

29 January 2015

2

2014 Full Year Results
Financial highlights• Sales CHF 4.4 billion, up 3.7% on a like-for-like* basis• Developing markets grew 7.0%, mature markets grew 1.1%;
both on a like-for-like basis• EBITDA margin improved to 23.9% in 2014 from 22.2% in 2013
• Free cash flow was 13.7% of sales, compared to 15.2% in 2013
• Dividend of CHF 50.00 per share proposed, up 6.4% year on year

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

Our 2014 results are a convincing demonstration of the continued value
we bring to our customers, across all regions and segments
2014 Full Year Results Presentation

29 January 20153

2014 Full Year Results
Sales performance: Solid performance in a difficult trading environment
In million CHF
4,404

2,108

2,296

Group

Fragrances

Flavours% 2008 – 2014 CAGR

5.2%

5.5%

4.9%

% 2014 growth on LFL* basis

3.7%

3.6%

3.7%

% 2014 growth in CHF

0.8%

1.2%

0.4%* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2014 Full Year Results Presentation

29 January 20154

2014 Full Year Results
FY 2008 to FY 2014 sales CAGR: In line with mid-term guidance
Fragrances

Fine Fragrances

Flavours

Latin America

2.9%

Asia Pacific

Consumer
Products

Total
Fragrances

6.8%

6.8%
North America

Fragrance
Ingredients

11.0%

2.2%

2.5%
EAME

Total
Flavours

5.5%

Group

3.6%

4.9%

5.2%

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

2014 Full Year Results Presentation

29 January 20155

2014 Full Year Results
Sales evolution by market: Solid LFL growth in all markets, absoluteamounts continue to be impacted by currencies
In million CHF

2,404

FY20132,400

FY2014

Mature% of total sales

55%

1,965

2,004

FY2013

FY2014Developing
54%

45%

46%

% 2008 – 2014 CAGR

1.8%

10.1%

% 2014 growth on LFL* basis

1.1%

7.0%

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

2014 Full Year Results Presentation

29 January 20156

2014 Full Year Results
Sales evolution by region: Latin America continues strong momentum
In million CHF

1180

578579FY2013

FY2014FY20131653

1686

FY2013

FY20141188

FY2014958951FY2013

FY2014

LATAM

APAC

NAEAME% 2014 growth on LFL* basis

11.3%

4.2%

0.6%

2.5%

% 2008 – 2014 CAGR

12.7%

8.2%

1.9%

3.0%

% 2008 – 2014 CAGR Developing (Ø 10.1%)

12.7%

10.4%

-6.8%

-3.7%

1.9%

1.3%

% 2008 – 2014 CAGR Mature (Ø 1.8%)* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals

2014 Full Year Results Presentation

29 January 201572014 Full Year Results
Fragrance Division: Operational Performance
Fine Fragrances grew 2.5%

Sales and EBITDA
CHF million

Growth mainly driven by Latin Americaand Middle East
Consumer Products grew 3.3%
Solid growth across all customer groups+1.2%

Double-digit growth in Latin America forthe third consequent year, double-digit
growth in Africa and the Middle East
Growth in all major categories, notably
fabric and personal care

Sales

2,108

2,083

Fragrance and Cosmetic Ingredients
grew 7.4%
Strong growth in all major markets
Double-digit growth in Specialities
EBITDA503+0.2%

FY 201324.2%

2014 Full Year Results Presentation

505

FY 2014
EBITDA margin

23.9%

29 January 201582014 Full Year Results
Flavour Division: Operational Performance
Health and Wellness, Developing
Markets and Targeted Customers
contributed to the overall performance

Sales and EBITDA
CHF million

Asia Pacific increased 3.9% driven byChina, India and the Philippines
Europe, Africa and Middle East grew 2.3%
driven by the developing markets of Africa,
Middle East and Poland, mature markets in
Europe of Benelux, Northern Europe andItaly offset by declines in the UK, Irelandand Germany+0.4%

Sales2,2962,286

North America grew 2.3% with strong
growth in Beverages, Dairy and Snacks
Latin America increased 10.7% driven bystrong growth in Argentina and Brazil
EBITDA

467+17.4%FY 2013
20.4%

2014 Full Year Results Presentation

548

FY 2014
EBITDA margin

23.9%

29 January 20159

Matthias Währen
Chief Financial Officer

2014 Full Year Results Presentation

29 January 201510

2014 Full Year ResultsHighlights• Sales CHF 4.4 billion, up 3.7% on a like-for-like basis• EBITDA increased by 8.5% to CHF 1,053 million• EBITDA margin improved to 23.9%, including a one-off gain of CHF 42 million• Net income of CHF 563 million, up 14.9% year on year
• Working capital increased to 25.8% from 22.6% as % of sales due to timingof sales• Underlying investments up versus 2013, at 4.8% of sales• Free cash flow of CHF 604 million, 13.7% of sales• Net debt of CHF 795 million, leverage at 17%• Dividend of CHF 50.00 per share proposed, up 6.4% year on year

2014 Full Year Results Presentation

29 January 201511

2014 Full Year Results
Exchange rate development: Results largely unaffected by currencies,
despite some significant individual currency movements versus Swiss francs

4%0%-1%-2%0%-3%-9%-10%-14%
JPY

USD

GBP

EUR

SGD

BRL

CNY

MXN

IDR

FY 2014

0.86

0.92

1.51

1.21

0.72

0.39

0.15

0.07

0.77

FY 2013

0.95

0.93

1.45

1.23

0.74

0.43

0.15

0.07

0.89

2014 Full Year Results Presentation

29 January 201512

2014 Full Year Results
Operating performance: Consistent improvement
Sales of CHF 4,404 million(2013: CHF 4,369 million)
Gross margin of 46.0%, up from 44.7%,
driven by solid sales volumes, lower
operational costs in Flavours and supply
chain efficiencies

Grossmargin

44.7%

46.0%

1,053

EBITDA of CHF 1,053 million, up 8.5%,driven by:EBITDA(in million Swiss francs)• Improved Gross Profit• Operating expenses under control• One-off gain of CHF 42 million
EBITDA margin of 23.9%, up from 22.2%
in 2013970

Operating income of CHF 760 million, up
9.6% from 2013 driven by higher EBITDA

As %of sales
2014 Full Year Results Presentation

FY 2013

FY 2014

22.2%

23.9%

29 January 201513

2014 Full Year Results
Financing costs and other financial expenses
Other financial expenses (net)

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

8563

28
20FY 2013

FY 2014

Financing costs down in 2014, following re-financing overrecent years at attractive interest rates. Pension charge toFinancing also reduced. In addition, in 2013, the Group
incurred a non-cash charge of CHF 9 million

FY 2013

FY 2014

Other financial income and expenses declining, despite
currency volatility in developing markets

2014 Full Year Results Presentation

29 January 201514

2014 Full Year Results
Net income: increasing by 15% as a result of continued strong
operating performance
Income before tax of CHF 677 million, up from
CHF 580 million in 2013, driven by:
Net income
In CHF million• Significantly improved EBITDA• Lower financial expenses

563

Effective tax rate of 17%, versus 16%in 2013
Net income of CHF 563 million, or 12.8%of sales, versus 11.2% in 2013
Basic EPS of CHF 61.18, versus
CHF 53.43 in 2013
490

BasicEPS(CHF)2014 Full Year Results Presentation

FY 2013

FY 2014

53.43

61.18

29 January 2015152014 Full Year Results
Free cash flow: strong underlying performance• Underlying EBITDA, excluding the one-off gain from the sale of land (CHF 42 million), up by 4.2%
• Working capital as a % of sales temporarily up to 25.8% of sales, compared to 22.6% of sales at December 2013
• Net CAPEX and Intangible investments of CHF 156 million (3.6% of sales) compared to CHF 174 million(4.0% of sales) in 2013
• Free cash flow of CHF 604 million, or 13.7% of sales, in 2014, compared to 15.2% in 2013

FCF Bridge (as a % of sales)

0.8%

0.4%

0.4%

0.1%

3.2%

15.2%

13.7%

2013

IncrementalEBITDA

Net Investments

Other mvts

2014 Full Year Results Presentation

InterestWorking Capital2014

29 January 201516

2014 Full Year Results
Conservative debt profile: re-financing on a continuous basis to benefit
from attractive rates
March 2014:

Entered into a CHF 100 million 1.00% 6.5 year public bond and a CHF 150 million 1.75%
10 year public bond, the proceeds of which were used to reimburse a CHF 300 million public bondApril 2014:

Reimbursement of USD 75 million US private placement412357
In million CHF

299

206
140

148

5-6 Y

6-7 Y57

ST < 1 Y

1-2 Y

2-3 Y

3-4 Y

4-5 Y

2014 Full Year Results Presentation

8-11 Y

C & CE

29 January 201517

2014 Full Year Results
Leverage ratio: Continuing to de-leverage on a yearly basis
Leverage ratio of 17% as at December 2014 as a result of solid cash flow generation
Intention to maintain a medium term leverage ratio target below 25%
Company will exclude from equity definition any impact arising from changes in IAS 1928%

29%
24%

18%

Dec '10

Dec '11

Dec '122014 Full Year Results Presentation

Dec '13

17%

Dec '1429 January 201518

2014 Full Year Results
Dividend per share: Increasing 6.4% YoYFree cash flow of CHF 5.2 billion generated over the past 15 years
CHF 2,114 million of cash flow returned to shareholders as dividends*

47

and CHF 504 million (net) through share buy-backs

15.4

16.3

17.6

18.8

50*

36
20

19.5

20.6

21.5

22662

6.5

7

8.1

549

273

295

289

262

203

2000

2001

2002

2003

2004

512
437

390

340

604

2005

2006

157

145

2007

2008

Free Cash Flow117
2009

2010

2011

2012

2013

2014

Dividend* Subject to approval of shareholders at the AGM in March 20152014 Full Year Results Presentation

29 January 201519

2014 Full Year Results
Amortisation of intangible assets• Pre Quest amortisationof intangible assets ofapprox. CHF 17 million
p.a.
• Quest+ intangible
assets (exc. Goodwill)amounts to CHF 1,225
million, updated toinclude Solianceintangible amortisation• Intangible assets
mainly related tocustomers, formulae
and technologies• IT amortisation
updated to reflect sizeand scope of projects(e.g. regulatoryengine)

Total annual amortisation charge(in CHF millions, estimated)

155

21160

180

158

103

91

58
4364

3834343477

544271

66

4332

32
1719171717172012

2013

2014

E2015

E2016

Pre Quest

2014 Full Year Results Presentation

Quest+SAPE2017

Other IT

29 January 201520

2014 Full Year Results
Financial summary• Sales of CHF 4.4 billion, an increase of 3.7% on a like-for-like basis, briefs
pipeline and win rate remain strong• Operating leverage and strong cost focus driving improved EBITDA margin• Net income of CHF 563 million, up 14.9% versus 2013
• Cash flow remains strong, despite temporary hike in working capital as a %of sales• Net debt CHF 795 million, leverage ratio 17%• Tax free cash dividend of CHF 50.00 per share proposed

2014 Full Year Results Presentation

29 January 201521

Gilles Andrier
Chief Executive Officer

2014 Full Year Results Presentation

29 January 201522

2014 Full Year Results
On track to deliver on our ambitious mid-term guidance

4.5 to 5.5%

Best-in-class

14-16%

Above 60%

organic sales growth
per annum2

EBITDA

free cash flow as %of sales in 2015

free cash flow returnto shareholders1

Driven by a five-pillar strategy
Developing markets

Research anddevelopment

Health and wellness

Sustainable sourcingof raw materials

Targeted customers
and segments

1 FCF (free cash flow), above 60% return to shareholders whilst maintaining a leverage ratio of no more than 25%
2 Sales growth assumes a market growth of 2-3%

2014 Full Year Results Presentation

29 January 2015

23

Q&A

2014 Full Year Results Presentation

29 January 201524

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 © 2014-2015 Givaudan SA. All rights reserved.

2014 Full Year Results Presentation

25