2019
Company
Highlights

2019 Company Highlights
Creating and sharing value
Givaudan takes every opportunity for
growth and shared success by transforming
our financial and intangible capitals intovalue for not only the Company, but also for
employees, society and the environment.
We remain on track to achieve ourambitious 2020 targets as we move towards
the end of our current five-year strategy
cycle. We continue our reporting of thisprogress on the lines set out for integrated
reporting – progress that allows us to drive
sustainable, long-term performance while
improving people’s happiness and healthand helping the environment.

Calvin Grieder
Chairman

Gilles Andrier
Chief Executive Officer

Table of contents
1

Key figures2

Performance highlights

4

Chairman’s introduction

7

Chief Executive Officer’s review

10

Progress against our strategy

12

Sustainable value creation

14

Expanding our capabilities andmoving closer to our customers

16

Performance review

19

Consolidated financial statements

22

Effective and transparent
Corporate Governance system

24

A competitive compensation
package

Givaudan – 2019 Company Highlights

Key figures 1

Key figures
fully on track to deliver2020 guidance
Sustainable performance review

2019

2018

PercentagechangeGroup sales

6,203

5,527

12.2%

Like-for-like sales growth

5.8%

5.6%

For the year ended 31 December, in millions of Swiss francs, except for environmental and social data

Economic

Gross profit

2,530

2,329

as % of sales

40.8%

42.1%

EBITDA ¹

1,275

1,145

as % of sales

20.6%

20.7%

Operating income
as % of sales
Income ²
as % of sales

920

883

14.8%

16.0%

702

663

11.3%

12.0%

Operating cash flow

1,136

916

as % of sales

18.3%

16.6%

8.7%
11.4%
4.2%
6.0%
24.0%

Free cash flow

787

703

as % of sales

12.7%

12.7%

11.9%

Total assets

10,396

9,277

12.1%

Net debt

3,679

2,847

29.2%

Leverage ratio

47%

41%

Share price as of last trading day of December (CHF)

3,031

2,276

33.2%

62

60

3.3%

76.17

71.92

5.9%

GHG emissions scope 1 + 2 ⁴(17.0%)(13.9%)

22.3%

Renewable electricity

75.0%

69.4%

8.1%

Number of employees as at 31 December (FTE)

14,96913,598

10.1%

Women in total work force

38.5%

38.2%

0.9%

Women in senior management

26.0%

24.0%

8.3%

Cash dividend ³ (CHF)
Earnings per share − basic (CHF)
Environmental

SocialLost time injury rate

0.22

0.25

(12.0%)

Turnover rate

10.0%

12.0%

(16.7%)

Main direct suppliers assessed via SEDEX

80.0%

78.0%

2.6%

1.	EBITDA defined as Earnings before interest (and other financial income (expense), net), Tax, Depreciation and Amortisation,corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.
2. The income is 100% attributable to equity holders of the parent.
3. 2019 dividend subject to shareholder approval at the AGM on 25 March 2020.
4. Compared to baseline year 2015. 2019 figure as at 30 September.
Note: Like-for-like excludes the impact of currency, acquisitions and disposals.

Givaudan – 2019 Company Highlights

2

Performance highlights

Performance highlights
Creating responsible growth
EBITDAin CHF million

Net income
in CHF million

1,275 702
EBITDA as a
% of sales

Proposed dividend
per share in CHF

20.6% 62.00

Absolute scope 1 + 2
GHG emissions ¹

–

CHF
2019

2018

Lost time injury rate ²

14,969 – 79%

1. Since 2015, as at 30 September 2019.
2. Since 2009.
3.	Like-for-like excludes the impact of currency,
acquisitions and disposals.

Growth LFL ³

6,203 million

5.8

+

5.8%
6,203
5,527

5.6

2017

4.9

5,051

2016

4.2

4,663
4,396

2.7

2015

Renewable
electricity

17% 75%

Employees

Group sales

Group sales in millions of Swiss francs% growth LFL

Free cash flow

CHF

2019
2018

787 million

2017

11.8

2016

12.8

2015

As a % of sales

12.7%
787

12.7

703

12.7

594
597
720

16.4
Free cash flow in millions of Swiss francs% of sales

Climate Change
Givaudan has received CDPʹs highest‘A score’ for its leadership in climate action.
We were recognised for our actions to cut
emissions, mitigate climate risks and develop
the low-carbon economy.

SUPPLIERENGAGEMENTLEADER2019

Supplier engagement
We earned a place on the CDP Supplier
Engagement leader board in recognition of
our actions and strategies to reduce emissions
and lower climate-related risk across our
supply chain.

Givaudan – 2019 Company Highlights

EcoVadis Gold
Givaudan has ranked in the top 1% of the
55,000 companies participating in the 2019
EcoVadis Corporate Social Responsibility (CSR)
assessment with a score of 72/100. This result
earned Givaudan a gold rating for the sixth year
in a row.

Performance highlights 3

Flavour Division
We make life taste delicious

Fragrance Division
We live to perfume life

We are dedicated to expanding the world’s expression throughflavours by bringing moments of delight with delicious flavour
and taste experiences. Our customers – global, international,
regional and local – are in the food and beverage industry andspan key segments including beverages, sweet goods, dairy andsavoury. We explore the globe for ingredients, innovate tobring our customers unique propositions, and delight millions
of consumers around the world.

The artistry of our perfumers encompasses a myriad of scented
stories for brands everywhere. Our customers serve theconsumer markets with fragrances for body, household andlaundry brands, as well as prestige fragrances, creating
unforgettable fragrances. And for nature-derived beauty
performance, our Active Beauty business offers acomprehensive portfolio of award-winning cosmetic
ingredients that incorporate the power of nature.

Sales

Sales

Sweet
goods
Sweet
goods

17%%
17
Dairy
Dairy

13%%
13

Beverages
Beverages

Total
Total
of of
group
sales
group
sales

55%%
55

Fragrance
IngredientsFragrance
Ingredients
andActiveBeautyandActiveBeauty32%% 13
13%%
32
38%%
38
Savoury
Savoury

SXI Switzerland Sustainability 25 Index®
We have been ranked in the list of the top 25
sustainable companies in the 2019 SXISwitzerland Sustainability 25 Index®,reflecting our strong commitment tosustainability, best exemplified by our‘A Sense of Tomorrow’ approach.

Fine
Fragrances
Fine
Fragrances

Total
Total
of of
group
sales
group
sales

45%%
45

19%%
19

68%%
68

Consumer
Products
Consumer
Products

Best-performing CEOs
Our CEO Gilles Andrier ranked number 30 on theprestigious Harvard Business Review’s (HBR)
annual ranking of 100 best-performing CEOs in theworld. The ranking is based both on financial
performance and environmental, social andgovernance (ESG) ratings.

Givaudan – 2019 Company Highlights

4

Chairman’s introduction“

I thank you allfor your commitment
to and investmentin Givaudan.
Calvin Grieder, Chairman

Givaudan – 2019 Company Highlights

Chairman’s introduction

5

Chairman’s
introduction
Fostering aculture of
excellence
I am pleased to report we
finished the fourth year of our2020 strategy with a strong
performance. I am proud of all weachieved, and would like to thankyou all for your commitment andinvestment in Givaudan.

“

Our newly defined
purpose marks a newchapter in our 250-year
heritage.
Gilles Andrier, CEO

In 2019, we delivered solid topline growth and free cash flow
generation, in line with our 2020 financial targets. On the basisof Givaudan’s strong performance in 2019, and its continued
solid financial position, the Board of Directors will propose anincrease in the dividend to CHF 62.00 at the Annual General
Meeting on 25 March 2020. This is the nineteenth increasesince our listing on the Swiss stock exchange.
Overall, we continued to deliver strong financial results andlong-term value creation for all our stakeholders. Our strategic
focus areas, driven by global megatrends and changing
consumer preferences, led us to further evolve our businessthrough acquisitions and investments for the future. The
addition of several companies enhanced our ability to delivercomplete solutions, extend our reach with local and regionalcustomers, and grow opportunities in attractive adjacentspaces. Investing in our business for the long term, we also

Givaudan – 2019 Company Highlights

6

Chairman’s introduction

continued to expand our global presence with a number of new
facilities and state-of-the-art innovation centres, ensuringclose proximity to our customers and consumers.
In 2020, while we see an unsettled external economic andpolitical landscape, the outlook for our business remains strong.
Our strategic focus areas remain very relevant to shifting global
trends, and we are positioned to act quickly to deliver for ourcustomers. High growth markets will remain a key strategic focus
area. Our expanded portfolio will continue to allow us to develop
new and differentiated solutions for our customers. Local andregional customers will also continue to be of strategic
importance, requiring us to adapt our offering and processes inmore customised ways. And the role of biotechnology and digitaltechnologies present exciting opportunities to innovate in ourcreation process, developing a broader and future-proof paletteof ingredients for our customers.
We are proud to be Givaudan and have sharpened ourunderstanding of why we are working for Givaudan – ‘Creating
for happier, healthier lives with love for nature. Let’s imagine
together.’ very well articulates why we do what we do. It
represents the strong commitment we make to our customers,
our people, and the planet to go beyond financial targets, andmake a meaningful contribution to address the challenges
faced by society. It sets our intention for the years to come, sits
at the heart of our strategy going forward, and is lived by our
employees day-to-day.
The climate crisis is one area where businesses need to bestronger in their actions to avoid the potential disruption toeconomies, society, people and planet. We’ve set ourselves thehighest bar of becoming a climate-positive business before
2050. This is bold in scope and scale, and will require new waysof operating and interacting with our stakeholders. We have along heritage of delivering excellence and I am pleased toreport that we have again been recognised by CDP, thenon-profit global environmental disclosure platform, which hasawarded us an ‘A score’ for climate change. In 2019, for the firsttime, Givaudan was ranked in the list of top 25 sustainable
companies in the SXI Switzerland Sustainability 25 Index®,
recognising our sustainability endeavours.
We continue to focus our efforts on succession planning. With anexcellent talent and succession programme in place for a numberof years, we have a strong group of senior leaders for today andfor the future. We have an experienced team in place at theBoard level, and at all levels we continue to ensure we have thenecessary competencies and the right blend of expertise andexperience. In 2021, three of our long-standing Board members
will stand down from their positions. To ensure continuity we willpropose two new members to stand for election at the Annual
General Meeting in 2020 and an additional member in 2021.

Givaudan – 2019 Company Highlights

We are well positioned for the future and I have every confidence
that Givaudan will continue on its successful path. We willcontinue to create further shareholder value through profitable,
responsible growth, guided by the purpose of our Company.
I’d like to express my thanks and gratitude to my fellow
members of the Board of Directors, the Executive Committee
and all our employees worldwide for their hard work anddedication. It is their contribution and passion that makes
Givaudan a unique place to work.
Finally, I would like to thank our shareholders for their trust andcontinuing support.

Calvin Grieder
ChairmanChief Executive Officer’s review

7

Chief Executive Officer’s review
Becoming a purpose-led business
We reached important crossroads
in 2019. Four years into our 2020
strategy cycle, we delivered anotheryear of strong performance while
also preparing for our next chapter,
powered by our newly definedCompany purpose and with asignificantly expanded portfolio
from recently acquired companies.
Strong financial performanceWith our customers at the heart of everything we do andnavigating a changing external environment, we were able todeliver a strong performance in 2019. We delivered sales of
CHF 6,203 million, an increase of 5.8% on a like for like basis,and 12.2% in Swiss francs, as well as a free cash flow of 12.7%
of sales, both in line with our 2020 financial targets. Our growth
was well balanced between our Flavour and Fragrance divisions
driven by the strong operational progress we made acrossall areas of the strategic pillars of our 2020 strategy. This
performance recognises the value we bring to our customers,
the strength of our business, and the hard work and dedicationof all our employees.

Thriving in a changing world
The global megatrends and rapidly changing consumer
behaviours that have played out over the last few years
continued to bring new opportunities to our business.
We saw increasing disruption stemming from consumers seeking
natural, organic and clean products, digitalisation, and the needto take bolder actions on the climate crisis. Our business has
continued to respond effectively, developing both internal
capabilities but also seeking new partnerships and joining forces
with companies to provide a stronger offer for our customers.
We continued to successfully implement our Givaudan Business

Solutions organisation, which integrates a range of core businesssolutions to improve our agility and reduce the complexity of ourinternal processes to focus entirely on delivering a superior
customer experience.
While our Company has grown and expanded, responding to thenumerous opportunities available, many constants remain. At thecore of our business is our relationship with our customers.
Providing them with the creative and innovative solutions thatare loved by consumers is what motivates us every day. Our
people also drive our success. Being a ‘great place to work’ is ourambition, and we continue to increase our efforts to engage ourpeople, investing in their development and creating an inclusive
culture where all our people grow and succeed. Our latest
Employee Engagement Survey showed a strong and improving
overall score, above external benchmarks.
I would like to share with you some examples of how ourCompany has continued to thrive in a changing world.

The changing shape of our Company
Our Company continued to grow in size and scope as we
expanded our portfolio through acquisitions. We welcomed the
addition of Golden Frog, drom, Albert Vieille, Fragrance Oils
and the cosmetics business of AMSilk to the Givaudan Group.
We announced our intention to acquire Ungerer and thecosmetics business of Indena. Since 2014, we have announced
15 acquisitions which represent an additional CHF 1.5 billion ofannualised sales. With each of these acquisitions we are not
only combining our expertise and product portfolios, but alsoenriching and evolving our culture. Our integration approach isto preserve and enhance the strengths of these acquiredcompanies and incorporate their values into our DNA.
We continued to strengthen our market-leading
position in Naturals, completing the acquisition of Golden
Frog, a Vietnamese flavour company. This builds on theother acquisitions we have made in recent years to provide
customers with a broader range of flavour and taste solutions
that match consumer demands for clean label, organic andnatural ingredients.

Givaudan – 2019 Company Highlights

8

Chief Executive Officer’s review

In our Fragrance Division, we acquired companies that support
our strategic ambitions with local and regional customers, healthand wellness and vertical integrations. Founded in 1911, drom has
a long heritage in fragrance creation with capabilities in many
parts of the world serving local and regional customers. We alsoacquired Fragrance Oils, a leading UK-based manufacturer andmarketer of innovative speciality fragrances for fine fragrances,personal and home care applications. This acquisition also
expands our capabilities to serve local and regional customers.
We acquired Albert Vieille, a French company specialised innatural ingredients used in the fragrance and aromatherapy
markets. For our Active Beauty business we acquired thecosmetics business of AMSilk, which offers an expanded
portfolio of natural and biosourced products supported by astrong research and development biotechnology platform.
We continued to build our presence in high growth markets,allowing us to be even closer to our customers. In 2019, we
opened our newest Fragrance encapsulation facility in
Singapore, a Flavours production facility in Pune, a Flavours
technical and commercial centre in Casablanca and an
extension to our Nantong production facility.

Innovating to stay relevant
Building on our 250 years’ pioneering heritage, our new
flagship Zurich Innovation Centre is the latest example ofGivaudan’s strong innovation culture. As the newest addition
to our large network of research and creation centres, it will
act as a key enabler to deliver breakthrough science andtechnology solutions for our customers while tackling theindustry’s most pressing challenges. With over 300 employees,
the centre provides an inspiring space designed for co-creation,
collaboration and innovation to work in partnership with ourcustomers, start-ups and universities.
Providing new, innovative solutions for our customers is criticalto maintain our competitive advantage. In 2019, we launched
Scentaurus®, a family of fragrance precursors to expand thepalette of ingredients available for our perfumers; FiveCarbon
Path™, a sustainability vision to drive all new molecule
developments in perfumery; and Ambrofix, a biotechnology
approach for the most widely used biodegradable fragrance
ingredient. In Active Beauty, we launched Sensityl™, an active
cosmetic ingredient that fuses nature and scientific expertise
to offer consumers dual benefits on beauty and well-being.
Playing our role to develop the future of food, we explored
new culinary concepts for meat and plant proteins during
Givaudan’s Chef’s Council 2019, and announced a breakthroughfat encapsulation technology for plant protein.

Givaudan – 2019 Company Highlights

Driving digital innovation saw us launch ‘Carto’, an AI-powered
tool that reinvents the way perfumers create. Bringing together
science and technology in the creation process, the tool allows
perfumers to focus on what they do best: crafting and inspiring
new creations. It efficiently brings to life their ideas, inspirations
and creative concepts while removing repetitive tasks.

Taking our sustainability ambition
to the highest level
We recognise strong action is needed to mitigate the mostdamaging effects of climate change. We joined the global
movement of leading companies committed to set 1.5°C
science-based emissions reduction targets aligned with a
net-zero future. Signing the UN Pledge is a milestone on
Givaudan’s path to reaching its ambition of becoming climatepositive before 2050. We’ve gone to the highest level byaligning our GHG emission targets to limit global warming at
1.5°C above pre-industrial levels, the most ambitious goal of theParis Agreement. This builds on our other measures such as
converting our entire electricity supply to fully renewablesources by 2025 and finding ways to be more energy efficientacross our operations.
Our sustainability commitments continued to be externallyrecognised. In the 2019 EcoVadis survey we came in the
top 1% of the 55,000 participating companies, earning a gold
rating for the fifth year in a row. CDP, a non-profit global
environmental disclosure platform, awarded us its highest‘A score’ for climate change. It confirms the success of ourstrategy ‘Responsible growth. Shared success.’ to ensure thehighest sustainability standards for our customers andshareholders, as well as for the planet.

Our newly defined purpose
In November, we announced our newly defined purpose,‘Creating for happier, healthier lives with love for nature. Let’s
imagine together’. It is supported by bold and ambitious
goals, including becoming a climate-positive business before
2050, and doubling our business through creations that
contribute to happier, healthier lives by 2030.
For the last 250 years our creations have inspired emotions andtouched millions of lives. By defining the ‘why’ behind what wedo, we are providing a compass to further guide our choices
and set strategic goals. Our purpose and supporting ambitions
will drive sustainable, long-term performance while leading theway to improve happiness and health for people and nature.
We are committed to contribute even more to our customers,
our people, society and nature.

Chief Executive Officer’s review

Key priorities for 2020
We enter the final year of our 2020 strategy confident we will
deliver on the goals we set for this strategy cycle, but wealso remain alert to the evolving market environment and theneed to adapt and stay agile.

Launching our newly defined purpose marks a new chapter inour 250 years. It is our compass to guide our strategic choices
and live by it in our day-to-day actions. I am excited about
making the final push to deliver our 2020 strategy and about
the opportunities ahead.

Innovation, digitalisation and sustainability will continue tochallenge our approaches, providing opportunities to do
things differently and offer differentiation for our customers.
Givaudan Business Solutions, set up to drive the ‘Deliveringwith excellence’ pillar of our strategy, will be fully establishedin 2020. It will support us in creating the additional financial
resources needed to continue growing with our customers.

Gilles Andrier
Chief Executive Officer

9

Our purpose
Creating for happier, healthier lives with love for nature.
Let’s imagine together.
CREATIONSNATUREPEOPLECOMMUNITIES

Let’s imagine together
with our customers
that through ourcreations more people
will enjoy happier,healthier lives.

Let’s imagine
together that
we show our love
for nature in
everything we do.

Let’s imagine
together that
Givaudan is a place
where we all love to
be and grow.

Let’s imagine
together that allcommunities
benefit by working
with Givaudan.

Contribution to ourcustomers’ success
By 2030, we will double ourbusiness through creations
that contribute to happier,healthier lives.

Climate-positive business
Before 2050, we will be a
climate-positive business(scope 1, 2 & 3).

Inclusion
Before 2030, we will bean even more balanced
and inclusive company.

Suppliers
By 2030, we will source allmaterials and services in a
way that protects people
and the environment.

Rethinking plastics
Before 2030, we will
replace single-use
plastics with eco-friendly
alternatives across oursites and operations.

Care
Before 2025, we will
improve how we care forall of our people.

Communities where wesource and operate
By 2030, we will improve
the lives of millions of people
in communities where wesource and operate.

Givaudan – 2019 Company Highlights

10

Progress against our strategy

Progress against our strategy

TARGET
2020

PERFORMANCE2019

Our 2020 strategy: Responsible growth. Shared success.

5.8%

Organic
sales growth

Free cash
flow as % of sales

4 – 5%

12 – 17%

Average organic
sales growth ¹

Growing with our customers

High growthmarkets

12.7%

Average free cash
flow as % of sales ¹

Delivering with excellence

Health andwell-being New innovative partnerships Increased strategic networks

Partnerof choicePartnering for shared success

Innovators

Suppliers

PeopleCommunities

Excellencein execution

Consumer preferred
products

Integrated
solutions

We continue to make strong operational progress across all areas of the strategic pillars. This performance recognises thevalue we bring to our customers, the strength of our business, and the hard work and dedication of all our employees.

Creating additional value through acquisitions
15 acquisitions announced since 2014. Approximately CHF 1.5 billion of incremental sales.
1.
2.
3.
4.

Over a five-year period by 2020.
Baseline year 2015. Performance as at 30 September 2019.
Use of municipal and groundwater. Baseline year 2009. Performance as at 30 September 2019.
Includes incinerated and landfilled waste. Baseline year 2015. Performance as at 30 September 2019.

Givaudan – 2019 Company Highlights

Progress against our strategy 11

85% supplier compliance rate
Mapping 50 raw material categories
and sourcing 33 raw material
categories in a responsible way

New innovative partnerships Enabler for industry collaborationand co-creation

All audited suppliers
are compliant by 2020

Sourcing for Shared Value-17%

scope 1 + 2 GHG emissions ²

75%

renewable electricity-26.8%	water per tonne of product ³-2.5%	waste per tonne of product,
year on year average ⁴-70%	scope 1 + 2 GHG emissions
between 2015 and 2030

LeadingInnovator

90% of our raw materials
volume of natural origin is
responsibly sourced by 2020100%	renewable electricity by 2025
-15%	water per tonne of productby 2020³-4%	waste per tonne of product,
year on year average ⁴

Innovating Responsibly

Acting for Our Environmentnt

ple and Partn
Peo
er
r
s
Ou or Our Enviro
n
f
m
ng
e
ti

on

fo

e

sp

rS

gR

ha

I n n o v a ti n

red V alu eAc

TARGETPERFORMANCE2019

Our sustainability approach: A Sense of Tomorrow.

sib

ly

rc
Sou

in

g

Meeting needs today. Defining what’s next.

Givaudan – 2019 Company Highlights

12

Sustainable value creation

Sustainable value creation
Our purpose

Creating for happier, healthier lives with love for nature. Let's imagine together.

Financial capitalFunds available to the GroupOur business model
Our divisions

Beverages

Dairy

Flavour

Our value chain

Customer RawmaordersteriSeCreating sharedvalue for our
key stakeholders

odu
Co e
d
un

Pr

ch

D

n
rs s u m
ta e
nd r
sc
in g
ov
er
y

i

Operations
Production sites, infrastructure,
end-to-end supply chain solutions.

CHF 528 m

Invested in R&D

Re-invest in innovationand growth

Good governanceOur relationships with local
communities, regulators andindustry bodies.

Givaudan – 2019 Company Highlights

Strategy

Su

Cash
flows

ly

> 11,000

Raw
materialsourced75%

Renewable
electricity

Returns toshareholders

Risks andopportunitiespp

Business Solutions

Products sold

rcing
Sou

> 74,000

s

t

rvi
ce

n
uda
va
Gi

g
nin
in brief
W e
h

Fine
Fragrances

Consumer Products

Savoury

R es e ar

Sourcing
Innovative sourcing models,
raw and indirect materials
and services.

Fragrancesal

Our people & culture
The skills, motivation,
diversity of our people and bestin class safety procedures.

Sweet goods

Creat
ion

Our innovative capabilities
Technology, know-how,partnership and investment

Fragrance
Ingredientsand Active
Beautyc ti o n

InputsFinance ouroperations

GovernanceManagement

Sustainable value creation 13

Our ethics

Our culture

Commitment to openness, transparency and honesty.

Inspiring, challenging, with heart and soul.

Outputs

Delivering responsible growth and shared success
Creating financial growth and increased profitability
for shareholders, employees and customers, and delivering
beneficial outcomes to society and the environment.

SDGs

Creating differentiating solutions throughresponsible innovation
Enabling novel consumer experiences and allowing
our customers to differentiate while adding value that
benefits the society and environment.

Outcomes

Industryleader
2020
strategytargets
on track

Building a culture of safety, performanceand appreciation
Effectively recruiting, developing and retaining abalanced workforce that meet future business imperatives
and ensuring their safety.
The secured supply of purchased materials and services
Commitment to ensuring that our raw materials are sourced
responsibly and working with suppliers who demonstrate respect
for people and the environment.

Sales
growth5.8%

Operational excellence and continuous improvement
Guaranteeing proximity to customers and rapid speed to market
through our global spread of operations, and committing to findways to reduce our environment impact from production.

Free Cash
Flow as %of sales

12.7%

Adhering to high ethical standards in our interactions
with our stakeholders
Mindful of our obligations in making a difference where
we can within our own operations, with our suppliers andin the communities in which we work.

Value creation for our stakeholders
Customers

Suppliers

Employees

Owners and investors

Local commu­nities

Public and regulatory agencies

Givaudan – 2019 Company Highlights

14 Expanding our capabilities and moving closer to our customers

Expanding our capabilities andmoving closer to our customers
Acquisitions

In both divisions, our acquisitions
are fully aligned with our2020 strategic priorities: Naturals,
Health and well-being, Active
Beauty, Integrated Solutions, local
and regional customers.

April 2019

Cosmetics businessof AMSilk

Active Beauty

Strengthening Active
Beauty’s global capabilities
in sustainable biopolymers.

New site openings

May 2019

August 2019

Albert Vieille

Fragrance Oils

Naturals | Aromatherapy

Fragrances

Further growing ourleadership in the Naturals
space for the Fragrance
Division.

Expanding ourcapabilities in serving
local and regionalcustomers.

Flavours production
site in Pune
Inaugurated in 2019,
our new Flavours
production facility in Pune,
India enables us to meetgrowing demand from
customers in the food andbeverage and health caresegments. The CHF 60 million
plant is our largest investment
in India.

Fragrance encapsulation centre in Singapore
We opened our newest
fragrance encapsulation
centre in Singapore for the
Asia Pacific market, offering

New flavour centre in Casablanca
We opened a new flavour technical and commercial centre in
Casablanca, Morocco, enabling us to meet the evolving needsof our food and beverage customers for innovative taste andflavour solutions. Through our local presence, customers will
benefit from a faster response as well as access to a wider
range of Givaudan’s global capabilities in flavours and extracts.

Givaudan – 2019 Company Highlights

customers based in Asiawith a complete range ofolfactives using the best
quality encapsulates for theirhome and personal carebrands. The CHF 15 million
facility further supports
Givaudan’s growth ambitionsin the region andcomplements the creativeand manufacturing facilities
opened in Singapore in 2015.

Expanding our capabilities and moving closer to our customers

September 2019

drom

Fragrances
Further asserting ourleadership position in
the Fragrance market
and with local andregional customers.

November 2019

Ungerer*

Golden Frog

Specialty ingredients, F&F

Naturals

Further growing
our leadership in the
Naturals space whilestrengthening our global
and regional presence.

Strengthening specialty
ingredient capabilities
and leadership in the fast
growing local and regionalcustomer segment.

15

Cosmetic Businessof Idena*
Active Beauty

Strengthening ourglobal capabilities inbotanical active cosmetic
ingredients.
* Acquisition not yet complete

Digital Factory in Paris

Zurich Innovation Centre

In January we opened our
Digital Factory, a project
accelerator bringing together
Givaudan experts, partners
and customers from aroundthe world to explore
new ways to transform
our business and drive
opportunities in a thriving
ecosystem of innovation.

We inaugurated our new flagship innovation centre in
Kemptthal, Switzerland, which aims to accelerate our global
efforts in creating differentiated and sustainable flavour,
taste and fragrance solutions for the food and beverage andbeauty, personal and home care industries.

Nantong extension
We doubled our flavour
production capacity in
China with the opening in2019 of a new extension at
our Nantong production
facility. The CHF 30 million
investment will support
our growth ambitions in
China and meet growing
demand from food andbeverages customers.

Givaudan – 2019 Company Highlights

16 Performance review

Performance review
Excellent financial performance
Business performance – Group

Financial performance

Givaudan completed the year with good business momentum
and with the project pipeline and win rates being sustained athigh levels. This excellent growth was achieved across all
product segments and geographies, with the key strategic focus
areas of Naturals, Health and well-being, Active Beauty,
Integrated Solutions and local and regional customers deliveringstrong growth, complemented by the recent acquisitions.

Financing costs in 2019 were CHF 79 million versus
CHF 55 million in 2018, largely related to the increase in the
net debt of the Group in connection with the acquisitions that
the Group has made. Other financial expense, net of income,was CHF 33 million in 2019 compared with CHF 56 million in
2018. As a reminder, in 2018 the Group incurred increased
foreign exchange losses in markets where currencies could
not be hedged.

The Company continues to implement price increases incollaboration with its customers to fully compensate for theincreases in input costs.

Group sales
Givaudan Group full year sales were CHF 6,203 million, an
increase of 5.8% on a like-for-like basis and 12.2% in Swiss francs
when compared to 2018.

Gross margin
The gross profit increased by 8.7% from CHF 2,329 million in 2018
to CHF 2,530 million in 2019. The company maintained a strong
cost discipline and continued to generate productivity gains. The
gross margin declined to 40.8% in 2019 compared to 42.1% in2018. This was due to the dilution impact created by the pricing
actions to compensate for higher input costs and by Naturex’s
current margin level which is lower than that of Givaudan.

Earnings Before Interest, Tax, Depreciation
and Amortisation (EBITDA)
The EBITDA increased by 11.4% to CHF 1,275 million in 2019
compared to CHF 1,145 million in 2018, whilst the EBITDA
margin was 20.6% in 2019, almost flat versus 2018. On a
comparable basis, the EBITDA margin was 21.5% in 2019
compared to 21.0% in 2018.
In 2019 the Group incurred costs of CHF 31 million in relation
to the implementation of the Givaudan Business Solutionsorganisation, compared with CHF 32 million in 2018.

The income tax expense as a percentage of income before
taxes was 13%, compared to 14% in 2018.

“

Our excellent performance in2019 demonstrates the strengthof our business and our ability toconsistently deliver industry
leading financial results, whilst
also implementing our key
strategic initiatives. Gilles Andrier, CEO
Net income
The net income was CHF 702 million in 2019 compared to
CHF 663 million in 2018, an increase of 6.0%. This results in a
net profit margin of 11.3%, versus 12.0% in 2018. Basic earnings
per share were CHF 76.17 compared to CHF 71.92 for the same
period in 2018.

Cash flow
Givaudan delivered an operating cash flow of CHF 1,136 million in
2019, compared to CHF 916 million in 2018, an increase of 24.0%.

Operating income

Working capital as a percentage of sales improved to 24.0% ofsales compared to 26.3% in 2018.

The operating income was CHF 920 million compared to
CHF 883 million, an increase of 4.2% versus 2018. The operating
margin was 14.8% in 2019 compared to 16.0% in 2018.

Total net investments in property, plant and equipment were
CHF 201 million, compared to CHF 129 million in 2018. During

Givaudan – 2019 Company Highlights

Performance review 17

Group – Sales
in millions of Swiss francs

2019, the Group continued its investment programme toexpand its capabilities in high growth markets. In 2018, theGroup completed an agreement to sell and leaseback the
Zurich Innovation Centre (ZIC) for a total consideration of
CHF 173 million, of which CHF 100 million was received in 2018,with the balance of CHF 73 million received in 2019.
Intangible asset additions were CHF 45 million in 2019, comparedto CHF 55 million in 2018 as the Company continued to invest in
its IT platform capabilities, including those to support theimplementation of the Givaudan Business Solutions organisation.
Total net investments in tangible and intangible assets were4.0% of sales in 2019, compared to 3.3% in 2018. Excluding
the impact of the ZIC transaction, total net investments intangible and intangible assets would have been 5.1% of sales,
compared to 4.2% in 2018.

2019

6,203

2018

5,527

2017

5,051

Group – EBITDA
in millions of Swiss francs
2019

1,275

2018

1,145

2017

1,089

Group – Operating income
in millions of Swiss francs

Operating cash flow after net investments was CHF 890 million
in 2019, versus the CHF 732 million recorded in 2018. Free cash
flow, defined as operating cash flow after investments andinterest paid, was CHF 787 million in 2019, versus CHF 703 million
for the comparable period in 2018. As a percentage of sales, free
cash flow in 2019 was 12.7%, compared to 12.7% in 2018.

2019

920

2018

883

2017

869

Group – Total gross investments
in millions of Swiss francs
2019

830

2018

1,104

2017

405

Financial position
Givaudan’s financial position remained solid at the end of theyear. Net debt at December 2019 was CHF 3,679 million,
compared to CHF 2,847 million at December 2018, with theincrease driven by the adoption of IFRS 16, as well as theacquisitions made by the Group. At the end of December 2019 theleverage ratio was 47%, compared to 41% at the end of 2018.

Sales performancein millions of Swiss francs
2019

2018
Sales
as reported

Like-fo-likedevelopment¹

Sales
like-for-like¹

Change %on like-for-like¹
basis

2019
Acquisition
impactCurrency
effectsSales
as reported

Change %in Swiss francs

Group

5,527

319

5,846

5.8%

435

-78

6,203

12.2%

Fragrance
Flavour

2,525
3,002

185
134

2,710
3,136

7.3%
4.5%

127
308

-38
-40

2,799
3,404

10.9%
13.4%

1.	Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, and (b) excluding sales of businesses acquired fromthe acquisition date until the period end date, up to 12 months from the acquisition date.

Sales per regionin millions of Swiss francs
Fragrances sales ¹

Flavours sales ¹

Group sales ¹

2019

2018

2019

2018

2019

Switzerland

34

37

26

22

60

59

Europe

859

773

841

750

1,700

1,523

Africa and Middle-East

226

184

247

216

473

400

North America

559

491

1,082

950

1,641

1,441

Latin America

346

332

353

297

699

629

Asia Pacific

775

708

855

767

1,630

1,475

2,799

2,525

3,404

3,002

6,203

5,527

Total geographical segments
1.

2018

Sales are revenues from external customers and are shown by destination.

Givaudan – 2019 Company Highlights

18 Performance review

Value added statement

Ungerer

The value added is defined as the value created by the activitiesof our business and its employees. Givaudan’s economic value
retained of CHF 174 million is the direct economic value
generated of CHF 6,244 million less economic value distributed
to stakeholders through operating costs, employee wages
and benefits, payments to providers of capitals and payments
to governments.

On 8 November 2019 Givaudan announced that it had reached
an agreement to acquire Ungerer and Company, the US based
Flavour, Fragrance and Specialty Ingredients Company.

Direct economic value generated and distributed
In CHF million

Dividend proposal

Revenues

Operating
costs

3,908

6,244

Employee wages
and benefits

1,405

Payments toproviders of capital

631

Payments togovernments
Economic
value
retained

Givaudan Business Solutions

126
174

The Company is now in the final phase of the implementationof Givaudan Business Solutions (GBS), a global organisation
providing best-in-class processes and services.
The progressive implementation of GBS is fully in line withthe plan and the new organisation continues to deliver theforeseen financial benefits.
In 2019, the Group incurred costs of CHF 31 million in relation
to the implementation of the Givaudan Business Solutionsorganisation, compared with CHF 32 million in 2018.

Givaudan – 2019 Company Highlights

The preparations for the completion of the transaction areproceeding as planned and the transaction is expected to closein Q1 2020.

At the Annual General Meeting on 25 March 2020, the Board of
Directors will propose a cash dividend of CHF 62.00 per sharefor the financial year 2019, an increase of 3.3% compared to
2018. If approved, this will be the 19th consecutive dividend
increase following Givaudan’s listing on the Swiss stock
exchange.
Key share figures
For the year ended 31 December
In Swiss francs except for number of shares

Market capitalisation (in millions)
Number of issued shares
Share price as at last trading day
Share price, highest
Share price, lowest
Earnings per share – basic (CHF)
Total shareholder return (in %)

2019

2018

27,9879,233,586
3,031
3,052
2,285
76.17
35.81

21,016
9,233,586
2,276
2,478
2,087
71.92
3.64

2020 Guidance – Responsible growth.
Shared success.
The Company’s 2020 ambition is to create further value
through profitable, responsible growth. As the Group entersthe final year of this strategic planning cycle, Givaudan’s 2020
ambition is built on the three strategic pillars of ‘Growing withour customers’, ‘Delivering with excellence’, and ‘Partnering forshared success’.
As part of the Company’s 2020 strategy, Givaudan also seeks tocreate value through targeted acquisitions, which complement
existing capabilities in providing winning solutions for its
customers. Since 2014, Givaudan has announced fifteen
acquisitions, which are fully in line with the growth pillars ofthat strategy.
Ambitious financial targets are a fundamental part ofGivaudan’s strategy. Givaudan aims to outpace the market with4 – 5% sales growth and a free cash flow of 12 – 17% of sales,both measured as an average over the five-year period of ourstrategy cycle. It is Givaudan’s intention to maintain its current
dividend practice as part of this ambition.

Consolidated financial statements 19

Consolidated
financial statements
Consolidated Income Statement
For the year ended 31 December
2019

2018

Sales

6,203

5,527

Cost of sales(3,673)(3,198)Gross profit

2,530

2,329

as % of sales

40.8%

42.1%

Selling, marketing and distribution expenses

(791)

(716)

Research and product development expenses

(528)

(477)

Administration expenses

(221)

(208)

in millions of Swiss francs, except for earnings per share data

Share of results of joint ventures and associates

4

5

Other operating income

41

63

Other operating expense

(115)

(113)

Operating income

920

883

14.8%

16.0%

(79)
(33)

(55)
(56)

as % of sales
Financing costs
Other financial income (expense), net
Income before taxes

808

772

Income taxes

(106)

(109)

Income for the period

702

663

Attribution
Income attributable to non-controlling interests––

Income attributable to equity holders of the parent

702

663

as % of sales

11.3%

12.0%

Earnings per share − basic (CHF)

76.17

71.92

Earnings per share − diluted (CHF)

75.59

71.36

Givaudan – 2019 Company Highlights

20 Consolidated financial statements

Consolidated Statement of Financial Position
As at 31 Decemberin millions of Swiss francs

20192018 aCash and cash equivalents

452

423

Derivative financial instruments

24

11

Financial assets at fair value through income statement44Accounts receivable – trade

1,365

1,253

Inventories

1,149

1,098

Current tax assets

50

41

Prepayments

35

53

Other current assets
Current assets
Derivative financial instruments

163

238

3,242

3,121

1

2

Property, plant and equipment

2,326

1,759

Intangible assets

4,286

4,008

Deferred tax assets

211

208

Post-employment benefit plan assets

32

22

Financial assets at fair value through income statement

177

61

Interests in joint ventures and investments in associates

34

33

87

61

Non-current assets

7,154

6,156

Total assets

10,396

9,277

Investment property
Other long-term assets

2

Short-term debt

335

4

Derivative financial instruments

29

12

Accounts payable – trade and others

833

719

Accrued payroll and payroll taxes

189

178

Current tax liabilities

111

95

Financial liability – own equity instruments

108

93

Provisions

18

24

Other current liabilities
Current liabilities
Derivative financial instruments
Long-term debt

207

225

1,830

1,350

79

43

3,796

3,266

Provisions

69

73

Post-employment benefit plan liabilities

601

490

Deferred tax liabilities

280

238

Other non-current liabilities

82

85

Non-current liabilities

4,907

4,195

Total liabilities

6,737

5,545

Share capital
Retained earnings and reserves
Own equity instruments

92

92

5,961

5,811

(168)

(142)

Other components of equity(2,245)(2,051)Equity attributable to equity holders of the parent

3,640

3,710

Non-controlling interests
Total equity

19
3,659

22
3,732

Total liabilities and equity

10,396

9,277a) The financial position as at 31 December 2018 has been restated to reflect the Naturex acquisition price allocation adjustment of CHF 9 million.

Givaudan – 2019 Company Highlights

Consolidated financial statements 21

Consolidated Statement of Cash Flows
For the year ended 31 Decemberin millions of Swiss francs

2019

2018

Income for the period
Income tax expense
Interest expense
Non-operating income and expense
Operating income
Depreciation of property, plant and equipment
Amortisation of intangible assets
Impairment of long-lived assets
Other non-cash items- share-based payments- pension expense- additional and unused provisions, net- other non-cash items
Adjustments for non-cash items(Increase) decrease in inventories(Increase) decrease in accounts receivable(Increase) decrease in other current assets
Increase (decrease) in accounts payable
Increase (decrease) in other current liabilities(Increase) decrease in working capital
Income taxes paid
Pension contributions paid
Provisions used
Purchase and sale of own equity instruments, net
Cash flows from (for) operating activities
Increase in long-term debt
(Decrease) in long-term debt
Increase in short-term debt
(Decrease) in short-term debt
Cash flows from debt, net
Interest paid
Purchase and sale of derivative financial instruments, net
Lease payments
Transactions of non-controlling interests
Other, net
Cash flows from financial liabilities
Distribution to the shareholders paid
Cash flows from (for) financing activities
Acquisition of property, plant and equipment
Acquisition of intangible assets
Acquisition of subsidiaries, net of cash acquired
Proceeds from the disposal of property, plant and equipment
Proceeds from disposal of investment property
Interest received
Dividend received from joint ventures and associates
Purchase and sale of financial assets at fair value through income statement, net
Impact of financial transactions on investing, net
Other, net
Cash flows from (for) investing activities
Net increase (decrease) in cash and cash equivalents
Net effect of currency translation on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

702
106
68
44
920
193
161
1

663
109
42
69
883
127
125
10

41
38
12
–
446
(28)
(101)
25
108
(19)
(15)
(106)
(37)
(21)
(51)
1,136
660
(184)
2,904
(2,919)
461
(51)
–
(52)
(3)
(7)
348
(552)
(204)
(275)
(45)
(478)
74
2
6
2
(105)
(29)
(43)
(891)
41
(12)
423
452

38
39
(7)
(43)
289
(9)
(72)
(35)
(11)
38
(89)
(73)
(46)
(25)
(23)
916
1,971
(258)
2,345
(2,620)
1,438
(29)
(22)

(5)
1,382
(534)
848
(239)
(55)
(1,694)
110
14
2
4
5
(3)
(3)
(1,859)
(95)
(16)
534
423

Givaudan – 2019 Company Highlights

22

Effective and transparent Corporate Governance system

Effective and transparent
Corporate Governance system

LTR: Werner Bauer, Lilian Biner, Michael Carlos, Calvin Grieder, Ingrid Deltenre, Thomas Rufer, Victor Balli

Board of Directors
The Board of Directors is comprisedof 7 Board members, headed by our
Chairman Calvin Grieder, and is
responsible for the ultimate direction,
strategic supervision and control of the
management of the Company. The
Board members are elected each year
at the Annual General meeting for amandate of one year.
Membership of the Board is composedin such a way as to ensure it possesses
all the competencies required to
execute its strategic oversight andcontrol over Givaudan.

Calvin Grieder
ChairmanEngineer
Swiss national, born in 1955 in the USA
Non-executive
First elected in 2014
Chairman since 2017

Prof. Dr-Ing. Werner Bauer
Vice-Chairman

Businessman
German and Swiss national, born in 1950
Non-executive
First elected 2014

Victor BalliBusinessman
Swiss national, born in 1957
Non-executive
First elected in 2016

Givaudan – 2019 Company Highlights

Lilian Biner
Businesswoman
Swedish national, born in 1962
Non-executive
First elected 2011

Michael Carlos
Businessman
French national, born in 1950
Non-executive
First elected 2015

Ingrid Deltenre
Businesswoman
Dutch and Swiss national, born in 1960
Non-executive
First elected 2015

Thomas Rufer
Certified Public Accountant
Swiss national, born in 1952
Non-executive
First elected 2009

Effective and transparent Corporate Governance system 23

LTR: Louie D’Amico, Tom Hallam, Simon Halle-Smith, Gilles Andrier, Anne Tayac, Willem Mutsaerts, Maurizio Volpi

Executive Committee
The Executive Committee is composedof 7 members under the leadership ofGilles Andrier, Chief Executive Officer.
Dedicated to the overall management ofGivaudan, each Executive Committee
member capitalises on an average of
20 years’ experience in the Company tobring a wealth of industry knowledge.

Gilles Andrier

Simon Halle-Smith

French national, born in 1961
Appointed in 2005

British national, born in 1966
Appointed in 2015

Tom Hallam

Willem Mutsaerts

Chief Executive Officer

Chief Financial Officer

British and Swiss national, born in 1966
Appointed in 2017

Louie D’Amico

President Flavour Division

US national, born in 1961
Appointed in 2018

Maurizio Volpi

Head of Global Human Resources and EHS

Head of Global Procurement andSustainability

Dutch national, born in 1962
Appointed in 2015

Anne Tayac

Head of Givaudan Business Solutions

French national, born in 1968
Appointed in 2016

President Fragrance Division

Italian national, born in 1969
Appointed in 2015

Givaudan – 2019 Company Highlights

24 A competitive compensation package

A competitivecompensation package
Givaudan aims to attract,
motivate and retain a diverse poolof highly talented people.
Compensation of the Executive Committee

Total Executive Committee compensation reported in 2019
remained stable compared to 2018, representing full year
compensation for seven members (including the CEO).
No other compensation or fees were accrued for or paid to
any member or former member of the Executive Committee
during the reporting period. No member or former memberof the Executive Committee or related parties had any loan
outstanding as of 31 December 2019.
The compensation paid is within the amounts approved byshareholders in the respective Annual General Meeting.
The fixed and long term variable compensation approved for2019 was CHF 15,000,000 (2018: CHF 17,000,000).
The annual incentive, short term variable compensation
amount for 2019 was CHF 4,269,632 and will be submitted
for approval at the 2020 Annual General Meeting (2018:
CHF 2,778,103).

Givaudan – 2019 Company Highlights

Compensation of the Board of Directors
Compensation of Board members consists of Director fees,
Committee fees and Restricted Share Units (RSUs). Fees are paid
at the end of each year in office completed. RSUs give
participants the right to receive Givaudan shares (or a cash
equivalent in countries where securities laws prevent the offeringof Givaudan securities) at the end of a three-year blocking period.
During this period Board members must hold RSUs (accordingly
are restricted from trading RSUs or the underlying Givaudan
shares), thereby aligning with shareholder interests over the
longer term. Board members are entitled to receive Givaudan
shares regardless of membership status so that, for example, if
re-election does not occur during the restriction period, awarded
RSUs are retained by the respective Board member. Such practicehas been implemented in line with best practice in support ofGivaudan’s commitment to ensuring Board independence.
The Chairman of the Board does not receive any additional board
membership fees. Similarly, a Committee Chairman does notreceive any additional Committee Membership fees. Each Board
member receives an additional amount of CHF 10,000 to coverout-of-pocket expenses. This amount is paid for the coming year
in office. The RSUs are also granted for the same period.
The compensation paid to the Board members for theperiod between the 2018 and 2019 Annual General Meetings(CHF 2,830,139) is again within the amount approvedby shareholders at the 2018 Annual General Meeting(CHF 2,950,000). Amounts approved at the 2019 Annual
General Meeting (CHF 2,950,000) will be paid by the endof the year in office and validated in the 2020 Compensation
report. Such approved and paid amounts may differ fromthose shown in the Board compensation summary table
which, according to the OaEC, must include compensation
paid in the reporting year.

A competitive compensation package

25

Executive Committee compensation summary

in Swiss francs

Gilles Andrier
CEO 2019

Gilles Andrier
CEO 2018- Base salary

Executive Committee
members (excludingCEO) ¹ 2019

Executive Committee
members (excludingCEO) ² 2018

Total
2019

Total
2018

1,167,910

1,058,023

3,191,433

3,194,282

4,359,343

4,252,305- Pension benefits ³

577,527

571,766

1,005,412

947,880

1,582,939

1,519,646- Other benefits ⁴

141,730

139,048562,795

819,837

704,525

958,885

Total fixed compensation

1,887,167

1,768,837

4,759,640

4,961,999

6,646,807

6,730,836- Annual incentive ⁵- Number of performance shares
granted ⁶- Value at grant ⁷

1,438,925

954,070

2,830,707

1,824,033

4,269,632

2,778,103

1,092

1,446

2,448

3,263

3,540

4,709

2,500,243

2,882,312

5,604,941

6,504,138

8,105,184

9,386,450

Total variable compensation

3,939,168

3,836,382

8,435,648

8,328,171

12,374,816

12,164,553

Total compensation

5,826,335

5,605,219

13,195,288

13,290,170

19,021,623

18,895,389

471,214453,000

989,482

988,000

1,460,696

1,441,000

Employer social security ⁸

1. Represents full year compensation of six Executive Committee members.
2.	Represents (a) full year compensation of five Executive Committee members, (b) partial year compensation of two outgoing members and (c) partial year compensationof the new Flavour Division President.
3. Company contributions to broad-based pension and retirement savings plans and annualised expenses accrued for supplementary executive retirement benefit.
4. Represents annual value of health and welfare plans, international assignment benefits and other benefits in kind.
5. Annual incentive accrued in reporting period based on performance in the reporting period.
6. 2019 Performance shares vest on 15 April 2022, 2018 Performance Shares vest on 15 April 2021.
7. Value at grant calculated according to IFRS methodology and based on 100% achievement of performance targets.
8. 2019 estimated social security charges based on 2019 compensation; 2018 estimated social security charges based on 2018 compensation.

Board of Directors compensation summary
2019
in Swiss francs

Calvin Grieder
Chairman ⁵

Victor
Balli ⁵

Prof. Dr-Ing.
Werner Bauer ⁵

LilianBiner ⁵

MichaelCarlos ⁵

IngridDeltenre ⁵

ThomasRufer ⁵

Total
2019¹

Director fees ²400,000

100,000

100,000

100,000

100,000

100,000

100,000

1,000,000

Committee fees ²

65,00050,00065,00025,00065,00050,00055,000375,000

Total fixed (cash)

465,000

150,000

165,000

125,000

165,000

150,000

155,000

1,375,000

Number of RSUs
granted ³

252

63

63

63

63

63

63

630

Value at grant ⁴576,980

144,245

144,245

144,245

144,245

144,245

144,245

1,442,450

Total
compensation

1,041,980

294,245309,245

269,245309,245294,245299,2452,817,450

1.
2.
3.
4.
5.

Represents total compensation for the Board of Director paid in respect of the reporting year, reported in accordance with the accrual principle.
Represents Director and Committee fees paid in respect of the reporting year, reported in accordance with the accrual principle.
RSUs blocking period ends on 15 April 2022.
Economic value at grant according to IFRS methodology, with no discount applied for the blocking period.
The function of each member of the Board of Directors is indicated on pages 5 – 6 in the 2019 Governance report.

Estimated social security charges based on 2019 compensation amounted to CHF 233,000 (2018: CHF 203,000).
Executive Committee: ownership of Givaudan securities

Board of Directors: ownership of Givaudan securities

2019
in numbers

SharesUnvested
Performance Shares2019
in numbers

SharesUnvested RSUs

Gilles Andrier, CEO

3,100

4,315

Calvin Grieder, Chairman

295

904

Tom Hallam

328

1,541

Victor Balli

85

226

Louie D’Amico

275

1,258

Prof. Dr-Ing. Werner Bauer

1,265

226

Maurizio Volpi

634

2,156

Lilian Biner

672

226

Simon Halle-Smith

452

1,278

Michael Carlos

1,097

226

Willem Mutsaerts

351

1,278

Ingrid Deltenre

202

226

Anne Tayac

125

1,247

Thomas Rufer

885

226

Total 2019
Total 2018

5,265
5,097

13,073
13,776

Total 2019
Total 2018

4,501
3,906

2,260
2,225

Givaudan – 2019 Company Highlights

26

Our reporting suite

Our reporting suite
The 2019 Integrated Annual Reportoffers a holistic explanation of ourvalue creation, financial and nonfinancial capitals and performance.
The full Governance, Compensation
and Financial reports are available in
one separate PDF.

2019 Governance, Compensation
and Financial Report
Available in English
PDF from 24 January 2020www.givaudan.com –media – publications

The 2019 Sustainability Highlights
offers case studies and data
for the three focus areas of oursustainability approach as well as
eco-efficiency targets versus progress.

Our website hosts the online
Integrated Annual Report andthe full Sustainability GRI Index.
Readers are advised to consult
our entire reporting suite to get
a complete overview.

Our Sustainability Approach
Available in English
PDF from 24 January 2020www.givaudan.com –sustainability – publications

2019
Governance,
Compensation and
Financial Report

Online version
Available in English
Creating and sharing value – Story 1
Driving digital innovation in Fragrances
Creating and sharing value – Story 2
Raising our ambitions to become climate positive

20192019 Integrated Annual ReportCreating and sharing value – Story 3
The future of protein

Integrated
Annual Report

Integrated Annual Report
and Sustainability GRI Index *Available from 24 January 2020www.givaudan.com – investors –online annual report2019 Company Highlights
Available in English,
French and German
PDF and print from 25 March 2020www.givaudan.com –media – publications

2019 Integrated Annual Report
Available in English
PDF from 24 January 2020
Print from 25 March 2020www.givaudan.com – media – publications

2019 2019
Company
Highlights

Sustainability
Highlights

2019 Sustainability Highlights
Available in English
PDF and print from 25 March 2020www.givaudan.com –sustainability – publications

To order publications: www.givaudan.com – media – publications
The full suite can be found on www.givaudan.com – investors – online annual report – download centre* Sustainability GRI Index is updated in March 2020 with full-year 2019 environmental data and external assurance statement.

Givaudan – 2019 Company Highlights

Givaudan SA
Chemin de la Parfumerie 51214 Vernier, Switzerland

General information
T + 41 22 780 91 11

Media and investor relations
T + 41 22 780 90 53

Share registry
Computershare Schweiz AG
Postfach
4601 Olten, Switzerland
T + 41 62 205 77 00

Share information
Symbol: GIVN
Security number: 1064593
ISIN: CH0010645932

Concept, design, consulting and realisation:
PETRANIX Corporate and Financial Communications AG
www.PETRANIX.com
Printed in Switzerland by Neidhart + Schön Print AG, www.nsgroup.ch
The 2019 Company Highlights are published in English, French and German.
All trademarks mentioned enjoy legal protection.

This report may contain forward-looking information. Such information is subject
to a variety of significant uncertainties, including scientific, business, economic andfinancial factors. Therefore actual results may differ significantly from those presented
in such forward looking statements. Investors must not rely on this information forinvestment decisions.
© Givaudan SA, 20202

www.givaudan.com