2018 Highlights
Delivering with excellence2018 Highlights
Delivering with excellence

We strive for excellence at every
touch point with our customers,
and in today’s competitive and fastmoving market, this demands that
we are agile and efficient.
We focus our investments onareas that bring most value toour customers while seeking
to enhance our operational
excellence and efficiency acrossthe organisation to further
streamline our costs and delivera strong financial performance.

Givaudan – 2018 Highlights

Table of contents
1

Key figures

2

Givaudan at a glance

4

Chairman’s introduction

6

Chief Executive Officer’s review

10

Performance review

12

Value creation at Givaudan

14

Our unique positioning

16

Our 2020 strategy

18

Acquisitions

20

A Sense of Tomorrow

22

Mega trends

24

Corporate governance andcompensation25

Corporate governance: highlights

28

Compensation: highlights

31

Financial statements

32

Consolidated financial statements

Key figures

1

Key figures
Strong business momentum –investing for the future
Performance review
2018

2017

PercentagechangeGroup Sales

5,527

5,051

9.4%

Like-for-like sales growth

5.6%

4.9%

For the year ended 31 December, in millions of Swiss francs, except for capital markets and employee data

Sales and results

Gross profit

2,329

2,250

as % of sales

42.1%

44.5%

EBITDA ¹

1,145

1,089

as % of sales

20.7%

21.6%

Operating income
as % of sales
Income attributable to equity holders of the parent
as % of sales

883

869

16.0%

17.2%

663

720

12.0%

14.2%

3.5%
5.2%
1.7%
(7.9%)

Balance sheet and cash flows
Operating cash flow
as % of sales
Free cash flow

916

861

16.6%

17.0%

6.4%

703

594

as % of sales

12.7%

11.8%

18.4%

Net debt

2,847

1,074

Leverage ratio

41%

21%

Market capitalisation

21,016

20,794

Share price as of last trading day of December

2,276

2,252

1.1%

60

58

3.4%

71.92

78.18

(8.0%)

13,598

11,170

21.7%

0.25

0.33

(24.2%)

165.1%

Capital Markets

Cash dividend ²
Earnings per share − basic (CHF)

1.1%

Employees
Number of employees as at 31 December
Lost time injury rate

1.	EBITDA: Earnings Before Interest (and other financial income (expense), net), Tax, Depreciation and Amortisation. This corresponds to operating income before depreciation,amortisation and impairment of long-lived assets.
2.	2018 dividend subject to shareholder approval at the AGM on 28 March 2019.
Note: Like-for-like excludes the impact of currency, acquisitions and disposals.

page 10, Performance review
page 31, Financial statements

Givaudan – 2018 Highlights

2

Givaudan at a glance

Givaudan at a glance
Global industry leader in flavours and fragrances
5,527 million
Group sales (in CHF)

477 million

60.00

R&D spend (in CHF)

Proposed dividend
per share (in CHF)

21,016 million
Market capitalisation(in CHF)

Sales by division

12%

Flavour Division
34% 13%
We make life taste delicious

Sweet goods

15%

Beverages
Flavour
Total 54%

Dairy

39%

Savoury

34% 13%verages

19%

Fine Fragrances

Fragrance Ingredientsand Active Beauty
Fragrance
Total 46%

39%

68%

Savoury

Consumer Products

flavours by bringing momentsof delight with delicious flavour
Fragrance46%
and taste experiences. OurTotal
customers– global, international,
regional and local – are in the food and beverage industry andspan key segments including beverages, sweet goods, savoury,
snacks and dairy. We explore the globe for ingredients,
Consumer
Products
innovate to bring our customers unique propositions,anddelight millions of consumers around the world.

68%

Fragrance Division
We live to perfume life
America
The artistryLatinof ourperfumers encompasses a myriad ofscented stories for brands everywhere. Our customers –global, international, regional and local – serve end-consumer
markets with fragrances for personal, home and laundry
North America
care brands as well as prestige perfumes, creating memorable
scents and fragrances used daily the world over. And fornature-derived beauty performance, our Active Beauty
business offers an extensive portfolio of award-winning
active cosmetic ingredients designed by teams that harness
the power of nature for cutting-edge cosmetics.

12%

27%

Markets

CREDIT RATING

Givaudan has received the first credit ratingsin 2018: A- credit rating, with a stable outlook,from S&P Global Ratings and Baa1 rating, withstable outlook, from Moody’s Investors Service.

Givaudan – 2018 Highlights

19%

Fine Fragrances
Fragrance Ingredients
We Active
are dedicatedandBeauty to expanding the world’s expression through57% of annual sales in mature markets,
43% of sales in high growth markets.
We are a global company with subsidiaries and branches
in 50 countries. High growth markets continue to be an
important contributor to our future growth, with sales driven
by the growing population and expanding middle class. In
both these markets, increasing demand for health and wellbeing products – examples of which include lower salt and fat
in food and anti-ageing effects in cosmetics – is a stimulating
potential for growth.

1

La

2

N

34%

EAME

27%

Asia PacificGivaudan at a glance

148

Locations worldwide

64

Production sites

over 74,000
Products sold per year

13,598
Employees

3

19.5 million
Hours worked safely

Global footprint
North America
Sales
CHF 1,441 million
Production sites
13
Employees
2,518Europe, Africa andMiddle East
Sales
CHF 1,982 million
Production sites
28
Employees
6,363

Latin America

Asia PacificSales
CHF 629 million
Production sites
9
Employees
1,840

Sales
CHF 1,475 million
Production sites
14
Employees
2,877

Sustainability leadership

A Sense of Tomorrow
Meeting needs today, defining what's next
As a responsible company, we understand the exciting
opportunities that sustainability offers to add value
to our business and society at large. Our sustainability
approach, 'A Sense of Tomorrow', transforms challenges
into new possibilities in sourcing, innovation andthe environment – for the Company, the surrounding
communities, our customers and consumers.

Givaudan has earned CDP leadershipscores with an A- grade in both climatechange and water security scoring.

www.givaudan.com – our company – about Givaudan

Givaudan – 2018 Highlights

4

Chairman’s introduction

Chairman’s introduction
Fostering a culture of excellence

In a challenging environment,
we concluded a successful thirdyear of our 2020 strategy withstrong business momentum.
I would like to thank you all foryour commitment and investmentin Givaudan.
In 2018, 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 2018, and its continued
solid financial position, the Board of Directors will propose anincrease in the dividend to CHF 60.00 at the Annual General
Meeting on 28 March 2019. This is the eighteenth increase since
our listing on the Swiss stock exchange.
I am proud of the achievements we made in delivering a strong
financial performance as well as continuing to invest into new
businesses to create long term value. Powered by our vision ‘toinspire emotion through our creations every day, everywhere,
as we strive for a better tomorrow’, we made great progress inmany areas. Our strategic focus areas, driven by global
megatrends and rapidly changing consumer desires have seen
us continue to expand our global presence. We joined forces
with companies that strengthen our existing capabilities, andevolved our business to ensure a superior customer experienceand increased agility.
The shift to more natural products continues to present uswith many exciting opportunities to provide solutions to ourcustomers that meet this growing need. Consumers aroundthe world are increasingly demanding more natural and organic
products from food and beverage companies, and our role isto help our customers develop great tasting solutions that
consumers will also feel good about. We invested in new

Givaudan – 2018 Highlights

commercial and creative centres to evolve our customer
offering and ensure we deliver winning solutions. With thelatest acquisitions we made in 2018, including Naturex, wehave now become the undisputed leader in natural flavours
and natural ingredients.
In 2019, the global economy will continue to face challenges
from rising economic and political uncertainty in many partsof the world. Despite these challenges, we remain very
optimistic about the outlook for our business. We are well
positioned to take advantage of the trends of growing
populations, people living longer and more responsibly, andaccelerating urbanisation. Our broad business and 2020
strategic focus areas are fully aligned to these opportunities,
and we continue to evolve our business to increase ouragility to deliver to our customers, and respond to changing
customer and consumer needs quickly.
Innovation, particularly in the areas of naturals andbiotechnology remains an important focus. In striving fora better tomorrow, we will develop alternative sources of
key natural raw materials, helping to protect these precious
natural sources. We also see a strengthening of the role ofbiotechnology to offer our customers the ingredients paletteof the future through the use of new, innovative processes.
Digitalisation is opening up exciting opportunities to change
the way we do business, either to provide new products
and new engaging experiences or to design simpler, more agile
business services. In January 2019, we opened our Digital
Factory in Paris bringing together experts, partners andcustomers to accelerate digital transformation and innovation.
We also anticipate the impact of a changing workplace.
Changing demographics means millennials and Generation Z
will comprise half the workforce by 2020, as well as a greater
participation of older age groups, with each group bringing
new sets of requirements and expectations. Givaudan seeksa diverse organisation to meet our business goals, to drive
innovation and create an inclusive culture where all its people
can grow and succeed.

Chairman’s introduction

5

I thank you
all for yourcommitment
and investmentin Givaudan.
Calvin Grieder,
Chairman

Succession planning for the Board of Directors and the senior
management continues to be important for our future success.
In 2018, Chris Thoen, Head of Global Science & Technology,
retired from the Executive Committee. I would like to extend
my warmest thanks to Chris for his contribution and many
achievements at Givaudan. We have an experienced team inplace at the Board level, and at all levels, we continue to ensure
we have the necessary competencies, and the right blend ofexpertise and experience.
Ethics and integrity are vital values for us, as they inspire thetrust we need to excel. To uphold these values, in 2018 we
updated our Principles of Conduct, which enshrine our wayof doing business in an ethical way and are shared with all
employees worldwide. Ethics and compliance also form thebasis for our successful sustainability efforts, which again
has been recognised by CDP, the non-profit global
environmental disclosure platform, awarding us an A- forclimate change and water security.

My thanks and gratitude goes to my fellow members of
the Board of Directors, the Executive Committee and all our
employees worldwide, for their hard work and support.
Their commitment and passion makes Givaudan a uniqueplace to work.
Finally, I would like to express my thanks to our shareholders
for your trust and continuing support. I remain confident
Givaudan is well positioned for the future and long term
success, and will continue its path of value creation and drivefor excellence in the years to come.

Calvin Grieder
Chairman

As we look forward, I have every confidence that Givaudan
will continue along its successful path, creating further
shareholder value through profitable, responsible growthcomplemented with acquisitions. Drawing on our 250-year
heritage, we will continue to demonstrate our resilience andability to turn challenges into opportunities to deliver solid
business performance.

Givaudan – 2018 Highlights

6

Chief Executive Officer’s review

Chief Executive Officer’s review
Delivering with excellence

I am pleased to report we delivereda strong performance in 2018,
demonstrating our continued
ability to deliver on our short-term
objectives whilst also continuing
to invest for the long-term future
success of our business.
The positive results are testament to the strength of thepartnerships we have with our customers, the resilienceof our business and the hard work and dedication of allof our employees.

Strong financial performance

In 2018, the third year of our 2020 strategy, we continued tomaintain good business momentum. Our topline growth, withsales of CHF 5,527 million, an increase of 5.6% on a like-for-likebasis, and 9.4% in Swiss francs, as well as our free cash flow of
12.7% of sales, are both in line with our 2020 financial targets.
Our growth was well balanced between our Flavour andFragrance divisions and was fuelled by the strong operational
progress we made across all areas of the strategic pillars ofour 2020 strategy.

Adapting to the external environment

While 2018 was a year of good progress against all our strategicpillars, we also faced some challenges. Raw materials prices
increased significantly in all categories and we continued to
implement price increases in collaboration with our customers
to compensate for the increases in input costs. In addition,
Givaudan and the whole industry were impacted by asignificant supply disruption of a major supplier of fragrance
ingredients. Our strong teamwork and collaboration allowed
Givaudan to avoid customer disruption.
We continue to see the global megatrends, and rapidlychanging consumer behaviours bring much change to ourGivaudan – 2018 Highlights

business and our industry. Consumer demand for morenatural and organic products is a key opportunity, and wecontinued to respond to this shift by joining forces withcompanies that allow us to provide a strengthened offering toour customers and become the market leader in naturals.

Expanding our capabilities

In 2018, we welcomed the addition of Naturex, Centroflora
Nutra and Expressions Parfumées to the Givaudan Group,
and announced our intention to acquire Albert Vieille SAS.
Since 2014, we have made nine acquisitions which represent
an additional CHF 1 billion of annualised sales.
In our Flavour Division we completed the acquisition ofCentroflora Nutra, supporting our commitment to provide
customers with a broader range of flavour and taste solutions
that match consumer demands for clean label, organic andnatural ingredients. This was further enhanced with theacquisition of Naturex, with its strong portfolio of plant
extracts and natural ingredients across the food and beverage,
nutrition and health and personal care sectors. Combining
our joint portfolios makes us the undisputed leader in natural
flavours and natural ingredients, and provides an entry into
natural colours, preservatives and phytoactives.
To expand the capabilities of our fragrance business, we
completed the acquisition of Expressions Parfumées, a Frenchfragrance creation house with a strong portfolio of local andregional customers. We further reinforced our presence inGrasse by announcing our intention to acquire Albert VieilleSAS, a French company specialised in natural ingredientsused in the fragrance and aromatherapy markets. We expect
to close this acquisition in the first quarter of 2019. Finally,
we entered into a strategic partnership with Synthite, aglobal player in the supply of high quality botanical extract
ingredients. We will jointly work on research and developmentof exceptional qualities of floral and spicy natural ingredientssuch as jasmine, tuberose, ginger and cardamom, to enrich
our palette of ingredients.
We are making good progress with the integration of thesecompanies to bring our complementary strengths to ourcustomers. With each of these acquisitions we are not only

Chief Executive Officer’s review

7

We constantly
challenge
ourselves todeliver withexcellence acrossour value chain.
Gilles Andrier, CEO

combining our expertise and product portfolios, but
enriching and evolving our culture. Our integration approachis to preserve and enhance the strengths of these acquiredcompanies, and incorporate their values into our DNA.

Delivering with excellence

We are constantly challenging ourselves to deliver withexcellence across our value chain, always taking our customers’
needs and perspectives into account. We focus our investmentson the areas that bring most value to our customers, while
continuously looking at the way we can improve the efficiencyof our operational and business processes. Today, our recently
launched Givaudan Business Solutions organisation integrates
a range of core business solutions to improve our agility, reducethe complexity of our internal processes and focus entirely ondelivering a superior customer experience.
Being close to our customers is also an important partof offering a ‘superior customer experience’. Our global
footprint offers a key competitive advantage in being able
to build closer partnerships with customers, and provide
a faster response to the needs of the local market. We
continued to invest in new facilities with the opening of a
new commercial and development centre in Jakarta,
Indonesia demonstrating our ongoing commitment to the
Asia Pacific region. We also made new strategic investments
in our Applied Microbiomics Centre of Excellence inToulouse, France to support further scientific innovation in
microbiomes. In early 2019, we will open a world-classflavour manufacturing facility in Pune, India, cementing our
50-year heritage of investment in India.
We set a target of reducing our global water consumption per
tonne of production by 15% by 2020, and we have reached thistarget three years ahead of schedule. This demonstrates ourability to innovate and implement the most efficient andsustainable processes, as part of our commitment to takeaction for the environment across our operations and beyond.
We have a target of 100% renewable electricity for ouroperations by 2025, and are on track with 20 sites using
renewable electricity at the end of 2018. To further advanceour goals, we joined a consortium of 16 partners who areparticipating in HyCool, an innovative energy technology
project funded by the European Union which aims to develop
cost-effective solutions using solar heat for industrial purposes.

DELIVERING WITH EXCELLENCE

We constantly challenge ourselves to deliverwith excellence across our value chain andstrive for excellence at every touch point withour customers. We look for ways to improvethe efficiency of our operations and businessprocesses and focus our investments on theareas that bring most value to our customers.

Givaudan – 2018 Highlights

8

Chief Executive Officer’s review

Givaudan Business Solutions implementation

GBS is the foundation of our 2020 strategy pillar, ‘Deliveringwith excellence’. It is a large transformation for us, and is uniqueto our industry. It will provide best-in-class business services
and solutions that support the Company to further improve ouroperational efficiency, and increase our agility. Building on theachievements in 2017, the implementation of GBS continues toprogress very well against the plan. The first financial benefitsof CHF 20 million were also delivered in 2018.
Our three regional delivery centres in Budapest, Buenos Aires
and Kuala Lumpur are fully operational. Importantly, theseteams all receive onboarding to ensure they feel part ofGivaudan, our unique culture and DNA, but also so they
understand the role GBS plays to make us more agile andefficient. All global functions have successfully transitioned
to the new ways of working, with many improved internal
efficiencies. Those areas of the business that are beingtransitioned country by country, including some supply chain
activities, are also progressing as planned, having completed
the transformation in Europe. In addition, we’re on trackwith building our digital capabilities that will help us to deliver
new solutions to support the business.
The success to date of this project has been down to thegreat collaboration of the teams in the centres, working in
partnership with the functions and sites to deliver for ourcustomers. Going forward, the scope of GBS has been
expanded, as we continue to leverage the best practices
from our divisions to define a common way forward for our
engineering activities.

Strength of our partnerships

Being a ‘partner of choice’ is embedded in our 2020 strategy,
and our partnerships are crucial to driving responsible andsustainable growth.
We continue to foster a culture of innovation, looking beyond
our internal capabilities to develop strategic innovation
partnerships with external players such as academia, start-ups,
technology providers and research institutions. We launched
MISTA, a new innovation platform for the food industry,
focused on product innovation and development. Opening inearly 2019, the MISTA Optimisation Center (MOC) will provide
start-ups and companies access to a product development
facility, equipment for pasteurisation and fermentation, experts
providing market and leadership development strategies, aswell as input from world renowned culinary and food scientists.
How we partner with our suppliers is also a key part of our2020 ambition. Our ‘Sourcing for Shared Value’ approach tosustainable procurement practices covers three core areas of
Responsible Sourcing, Sourcing at Origin and Communities at

Givaudan – 2018 Highlights

Source. In 2018, we strengthened our sustainable patchouli oil
sourcing in Indonesia. In cooperation with international NGO
Swisscontact, we are supporting patchouli producers todevelop their smallholder businesses in a way that is respectfulof the environment.
One of our most valuable assets is our people. We place greatemphasis on developing their skills, promoting a diverse
workforce and building a pipeline of future leaders. Our ambition
is to create a great place to work where every employee feels
able to contribute to the success of the Company. This year we
also launched a Company-wide programme, the GivaudanAwards, to celebrate and share success and recognise teams andindividuals who go ‘above and beyond’ to deliver outstanding
results and make exceptional contributions to our business.

Our role as a responsible and sustainable business
Being a responsible and sustainable business means we embrace
our role as a corporate leader in the global effort to safeguard
the future of the planet. Companies must be prepared to put
sustainability at the forefront of their strategies, and at Givaudan
we want to secure our business while making a positive impact
on the environment and society as a whole. Meeting today’sneeds without compromising the interests of future generations
is fundamental to our business model.

CLIMATE CHANGE LEADERSHIP

Our leadership on climate change action
continued to be recognised by CDP. We received
an A- grade for reducing greenhouse gas(GHG) emissions and for outstanding water
security. This was the fourth consecutive
year on the leadership level for the Company.
Our guiding framework is ‘A Sense of Tomorrow’, aconsolidation of all our global sustainability activities aroundthree key areas of sourcing, innovation and the environment.
Initiatives within each area look at the way we source
materials, develop products and reduce our environmental
footprint. This allows us to better meet our customers’ needs,
but also anticipate ever-evolving challenges for our industry,
our environment and society as a whole. Importantly, these
initiatives not only support our objectives but address theUnited Nations’ Sustainable Development Goals. Aligning ourown priorities on global aspirations such as dietary shifts,
health and well-being and environmental protection shows ourcommitment to sustainability.

Chief Executive Officer’s review

9

Our leadership on climate change continued to be recognised
by CDP, the non-profit global environmental disclosure
platform. We received an A- grade for both climate change andwater security. This was the fourth consecutive year on theleadership level for the Company, which has been disclosing
GHG emissions through its participation in CDP since 2007.

Key priorities for 2019

For the year ahead, we will continue along the path ofdelivering our 2020 strategy, staying alert to the evolving
market environment and adapting as needed.
We will continue to leverage the acquisitions we have made,maximising the unique set of talents, creativity, products
and technology that each company brings. Where we see
opportunities, we will continue to acquire companies thatfurther strengthen our capabilities and allow us to bring evengreater value to our customers. Our focus on delivering withexcellence remains, with the continued implementation of GBS
helping us to create the additional financial resources needed
to continue growing with our customers in the years to come.
Critical to our future success will be the areas of innovation,biotechnology, digitalisation and sustainability. We see many
opportunities to leverage these to create differentiatedservices, new ways of working and develop new ingredientsand creations that delight our customers.
In 2018 we marked our 250-year heritage of engaging
people’s senses, and inspiring emotion through our creations
every day, everywhere, as we strive for a better tomorrow.
It was fantastic to share so many inspiring stories with our
employees, partners, customers and shareholders. I am
excited about the year ahead, and the next chapter of ourjourney to deliver our 2020 strategy.

Gilles Andrier
Chief Executive Officer

Givaudan – 2018 Highlights

10

Performance review

Performance review
Strong business momentum –investing for the future
Business performance – Group

Givaudan completed the year with good business momentum
and with the project pipeline and win rates being sustained athigh levels. This good growth was achieved across all productsegments and geographies, with our key strategic focus areasof Naturals, Health and well-being, Active Beauty, Integrated
solutions and local and regional customers delivering strong
growth, complemented by the recent acquisitions.
The Company continues to implement price increases incollaboration with its customers to fully compensate for theincrease in input costs.
Group sales
Givaudan Group full year sales were CHF 5,527 million, an
increase of 5.6% on a like-for-like basis and 9.4% in Swiss francs
when compared to 2017.
Gross margin
The Gross profit increased by 3.5% from CHF 2,250 million in2017 to CHF 2,329 million in 2018. Despite continued productivity
gains and cost discipline, the Gross Margin declined to 42.1%
in 2018 compared to 44.5% in 2017, as a result of the lower grossmargin in the Fragrance Division, which was impacted by a
sharp and broad based increase in raw material costs.
Earnings Before Interest, Tax, Depreciation
and Amortisation (EBITDA)
The EBITDA was CHF 1,145 million in 2018 compared to
CHF 1,089 million in 2017, an increase of 5.2% in Swiss francs
and 4.3% in local currency. The EBITDA margin was 20.7% in2018 compared to 21.6% in 2017. On a comparable basis, the
EBITDA margin was 21.0% in 2018 compared to 23.3% in 2017.
Operating income
The operating income was CHF 883 million compared to
CHF 869 million, an increase of 1.7% versus 2017. Whenmeasured in local currency terms, the operating income
increased by 0.1%. The operating margin was 16.0% in 2018
compared to 17.2% in 2017.
Financial performance
Financing costs in 2018 were CHF 55 million versus
CHF 42 million in 2017, largely related to the increase in theGivaudan – 2018 Highlights

net debt of the Group in connection with the Naturex
acquisition. Other financial expense, net of income, was
CHF 56 million in 2018 compared with CHF 32 million
in 2017, mainly as a result of increased foreign currency
losses in markets where currencies could not be hedged,
most notably in Argentina.
The income tax expense as a percentage of income before
taxes was 14%, compared to 9% in 2017, which was impacted
by lower tax expenses in the United States. Excluding itemsof a non-recurring nature, the income tax expense as apercentage of income before taxes for 2017 was 15%.
Net income
The net income decreased to CHF 663 million in 2018 from
CHF 720 million in 2017. This results in a net profit margin of
12.0%, versus 14.2% in 2017. Basic earnings per share were
CHF 71.92 compared to CHF 78.18 for the same period in 2017.
Cash flow
Givaudan delivered an operating cash flow of CHF 916 million in
2018, compared to CHF 861 million in 2017.
Working capital was 26.3% of sales compared to 24.5% in 2017,
mainly as a result of the higher inventory levels in Naturex.
Total net investments in property, plant and equipment were
CHF 129 million, compared to CHF 189 million in 2017. During 2018
the Group continued its investment programme to support
growth in high growth markets, most notably with investments
in India, Singapore and China. The Group completed anagreement to sell and leaseback the Zurich Innovation Centre fora total consideration of CHF 173 million, of which CHF 100 million
has been received in 2018, with the balance to be received in 2019.
Intangible asset additions were CHF 55 million in 2018, comparedto CHF 53 million in 2017 as the Company continued to invest in
its IT platform capabilities, including those to support the
introduction of the Givaudan Business Solutions organisation.
Total net investments in tangible and intangible assets were 3.3%of sales in 2018, compared to 4.8% in 2017. Excluding the impactof the ZIC transaction, total net investments in tangible andintangible assets would have been 4.2% of sales.

Performance review 11

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
Total shareholder return (in %)

2018

2017

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

20,7949,233,586
2,252
2,289
1,716
78.18
23.69

Operating cash flow after net investments was CHF 732 million
in 2018, versus the CHF 619 million recorded in 2017. Free cash
flow, defined as operating cash flow after investments andinterest paid, was CHF 703 million in 2018, versus CHF 594 million
for the comparable period in 2017. As a percentage of sales, free
cash flow in 2018 was 12.7%, compared to 11.8% in 2017.
Financial position
Givaudan’s financial position remained solid at the end of
the year. Net debt at December 2018 was CHF 2,847 million,
compared to CHF 1,074 million at December 2017, with theincrease driven by the Group’s acquisitions and investment
programme, including Naturex. At the end of December 2018the leverage ratio was 41%, compared to 21% at the end of 2017.
During 2018, Givaudan received strong investment grade credit
ratings from S&P Global Ratings (A- with stable outlook) andfrom Moody’s Investors Service (Baa1 with stable outlook).
Givaudan Business Solutions
The Company is now in the implementation phase of Givaudan
Business Solutions (GBS), a global organisation providing
best-in-class processes and services.
The progressive implementation of Givaudan Business
Solutions is fully in line with the plan and has delivered the first
financial benefits of CHF 20 million in 2018.
In 2018 the Group incurred costs of CHF 32 million (Cashimpact: CHF 64 million) in relation to the implementation of
the Givaudan Business Solutions organisation, compared with
CHF 107 million in 2017 (Cash impact: CHF 47 million).
Naturex
Givaudan completed the acquisition of Naturex in September
2018 and has consolidated the financial results of Naturex from
1 September 2018. Naturex is an international leader in plant
extraction and the development of natural ingredients andsolutions for the food, health and beauty sectors.

2021 and at the same time return the profitability and otherkey financial indicators of the combined business to preacquisition levels by 2021 for the Flavour Division.
Dividend proposal
At the Annual General Meeting on 28 March 2019, Givaudan’s
Board of Directors will propose a cash dividend of CHF 60.00 per
share for the financial year 2018, an increase of 3.4% versus 2017.
This is the eighteenth consecutive dividend increase following
Givaudan’s listing at the Swiss stock exchange in 2000.
Value added statement
The value added is defined as the value created by the activitiesof our business and its employees. Givaudan’s economic value
retained of CHF 173 million is the sum of the elements disclosed
in the table below:
Direct economic value generated and distributed
For the year ended 31 December,in millions of Swiss francs

2018

2017

PercentagechangeRevenues

5,590

5,093

9.8%

Operating costs(3,408)(3,073)

10.9%
65.8%

Payments to governments

(131)

(79)

Payments to providers of capital

(589)

(557)

5.7%

Employee wages and benefits(1,289)(1,141)

13.0%

173

243

(28.8%)

Economic value retained2020 Guidance – Responsible growth. Shared success.
The Company’s 2020 ambition is to create further value
through profitable, responsible growth. Building on the firsttwo years of this strategic cycle in 2016 and 2017, Givaudan’s2020 ambition is built on the three strategic pillars of ‘growing
with our customers’, ‘delivering with excellence’, and‘partnering for shared success’.
As part of the Company’s 2020 strategy, Givaudan alsoseeks to create value through targeted acquisitions, which
complement existing capabilities in providing winning solutions
for its customers. Since 2014 Givaudan has announced nine
acquisitions, which are fully in line with the growth pillars
within the Company’s 2020 strategy.
Ambitious financial targets are a fundamental part ofGivaudan’s strategy. We aim to outpace the market with
4–5% sales growth and a free cash flow of 12-17% of sales,both measured as an average over the five-year period of
our strategy cycle. It is Givaudan’s intention to maintain its
current dividend practice as part of this ambition.

In 2018, Naturex contributed CHF 150 million of sales,
CHF 146 million in the Flavour division and CHF 4 million
in the Fragrance division. Givaudan aims to achieve sales
growth of the Naturex portfolio of 10% per annum from

Givaudan – 2018 Highlights

12

Value creation at Givaudan

Value creation at Givaudan
Through our sustainable business modelEngage your senses

Our vision
To inspire emotion through our creations every day,everywhere, as we strive for a better tomorrow.
Our mission
Together with our customers, we craft memorable
experiences that bring moments of delight to consumers.
Our culture
We impact the world as we inspire, challenge and act withheart and soul.
Our ethics
We are committed to adhering to high ethical standards inthe way we interact with all our stakeholders: open,transparent and honest.

Our unique positioning

Diversification across four axes›› Geographic expansion›› Customer diversification›› Scaling up›› Expanding beyond flavours and fragrances
Enhancing operations›› Through business optimisation and excellence:from SAP implementation to Givaudan Business Solutions
Our unique capabilities›› Leadership in R&D and innovation›› Broad diversification›› Operational excellence›› Best-in-class customer services›› Unparalleled consumer insight›› Leadership in naturals and sustainability

Capital inputs 2018

r
Sou

Crea
tion

Se
rv
ice

s
al

Givaudan – 2018 Highlights

m
at
er
i

tio n

duc
Pro

o
de nsu
rst m
an er
D
din
isc
g
ov
ery

C
un

Good governance›› Commitment to highest ethical standards›› Compliance Helpline open in all sites and available inthe 15 major languages›› 39 Givaudan sites have been audited according to
SMETA standards

rchSourcing & operations›› Over 10,000 different raw materials sourced›› 64 production sites in 26 countries›› Responsible Sourcing Policy driving compliance to highethical standards in our supply chainsRaw

Our value chain
creating sharedvalue for our
key stakeholders

Rese aPeople & culture›› 13,598 employees working in over 50 countries›› Unique global onboarding programme ensuring new
joiners get a strong unified sense of Givaudan›› Leadership development at all levels

Customerorderss

Our innovative capabilities›› CHF 477 million invested in R&D›› Over 495 employees working in Science & Technology›› Selected partnerships with innovators, accelerators
and with academiagnin
in riefW ebthusiness Solu
tio
an B
ns
ud
va
Gi
cing

Financial capital›› CHF 3,723 million equity›› CHF 129 million invested in property, plant and equipment

Cash
flows

Su

pp

ly

Re-invest Returns to Financein innovation shareholders our operations
and growthValue creation at Givaudan

13

Megatrends
Our strategy
Responsible growth. Shared success.

4 – 5%

12 – 17%

Average organic
sales growth

Average free cash
flow as % of sales

Growingwith ourcustomers

Deliveringwith
excellence

Partnerof choicePartnering
for sharedsuccess

Creating additional value
through acquisitions

Shaping a sustainable future
through A Sense of Tomorrow

Capital outcomes 2018

Financial capital›› CHF 5,527 million Group sales›› Free cash flow 12.7% of sales›› CHF 60.00 proposed dividend ¹
Our innovative capabilities›› Over 3,600 active patents›› Over 74,000 products soldPeople & culture›› 0.25 Lost time injury rate, down 76% since 2009›› 24% of women in senior management positions›› 304 leaders nurtured through theLeadership Senses programme›› 556 employees attended ONE Givaudan
onboarding events

Our business divisions
Dairy

Sweet goods

Beverages
Flavour
Division
Savoury

Fine Fragrances

Fragrance Ingredientsand Active Beauty
Fragrance
Division

Consumer Products

Good governance›› Total of CHF 1.8 million directed to charitablespending for local communities›› 85% of all employees completed
up-to-date training on our Principles of Conduct›› Global Data Protection programme in Givaudan
fully deployed in 2018, ensuring that Givaudan collects
and processes data in compliance with all applicablelegislation, in particular with the new EU General Data
Protection Regulation

Sourcing & operations›› 20 sites working with 100% renewableelectricity›› Active Green Teams on 64 Givaudan sites›› Earned CDP leadership scores with an A- grade in bothclimate change and water security scoring

1. Subject to shareholder approval at the AGM on 28 March 2019.
Givaudan – 2018 Highlights

14

Our unique positioning

Our unique positioning
Bringing together our capabilities
We have diversified and grown across four axes:

1Geographic expansion
into high growth markets–– 1990s: expansion from mature to highgrowth markets, matching the growthof our multinational clients–– Entry into India and China in 1993 – 94,
Middle East in 1999

2

Customerdiversification–– Early 2000s: diversifying into the local andregional customer base–– This continues today, and GBS will further
enhance our flexibility in serving all our clients

We have enhanced our operations throughbusiness optimisation and excellence:
SAP implementation

Managing the business more consistently

We have unique capabilities to service our customers:
Leadership in R&D and innovation–– Largest talent pool and investment in R&D in the industry–– Uniquely placed to fill the gap of large FMCG players outsourcing innovationand supporting local and regional champions–– Leading presence with industry bodies and regulators

Broad diversification–– Market leading position in all sub-segments–– Global footprint with scale to service local market needs–– Global capabilities to manage complex regulatory landscapeOperational excellence–– Proximity to customers ensuring rapid speed to market–– Best-in-class technologies to reduce our environmental impact from production–– On-going commitment to improving environmental performance

Givaudan – 2018 Highlights

Our unique positioning

3

Scaling up–– Flavour and fragrance market leadershipsecured with Quest acquisition in 2007–– Further growth on geographic andcustomer axes–– Expansion across applications
e.g. oral care, fine fragrances, snacks

4

15

Expanding beyond
flavours & fragrances–– Moving more into active cosmetic
ingredients, naturals extracts andintegrated solutions–– Executing our focused merger andacquisition strategy in adjacent areas

Givaudan Business Solutions (GBS)

Optimised processes and enhanced customer experience

Best-in-class customer service–– Mastering complexity in the supply chain–– GBS to enhance the overall customer experience–– Investments in resources and systems to assure innovation and regulatory compliance

Unparalleled customer insight–– Industry-leading preference discovery platforms and consumer insight programmes
for consumer understanding, cultural insights and sensorial decoding–– Leveraging digital capabilities to enhance insights in consumer trends

Leadership in naturals and sustainability–– Broad naturals portfolio strengthened through recent acquisitions–– A holistic approach to naturals grounded in an understanding of sourcing,natural extraction and cooking techniques–– Strategic partnerships in sourcing for shared value–– Sustainability approach embedded in the business

Givaudan – 2018 Highlights

16

Our
2020 strategy
Strategic
value creation

Our 2020 strategy
Responsible growth. Shared success.

PERFORMANCE 2018

PERFORMANCE 2018

Organic
sales growth

12.7%

PERFORMANCE 2018

Free cash
flow as % of sales

 New innovative partnerships
 Increased strategic networks

TARGET 2020

TARGET 2020

TARGET 2020

5.6%

4 – 5%

12 – 17%

Partnerof choiceGrowing with our customers

Deliveringwith excellence

Partnering for shared successAverage organic
sales growth ¹

High growthmarkets

Average free cash
flow as % of sales ¹

Health andwell-being

Innovators

Suppliers

PeopleCommunities

Excellencein execution
Consumer preferred
products

Integrated
solutions

Creating additional value through acquisitions

Shaping a sustainable future through A Sense of Tomorrow
1. Over a five-year period by 2020

Givaudan – 2018 Highlights

Our 2020 strategy

17

Our three-pillar strategy – growing with ourcustomers, delivering with excellence,and partnering for shared success – together
with ambitious financial targets, guidethe business in transforming resources intovalue for our stakeholders throughsustainable and responsible growth.
In 2018, we remain on track to achieve ourfinancial targets and continue to makestrong progress in each of the three pillars.
	www.givaudan.com – investors – online annual report –2018 achieving our 2020 strategy

Givaudan – 2018 Highlights

18 Acquisitions

Acquisitions
Expanding our capabilities,
creating additional value
Acquisitions have always been apart of Givaudan’s strategy to create
value. Our 250-year heritage of
growth and expansion is rooted ina drive to innovate products andsolutions that ‘engage your senses’.
Today, an increasing emphasis on more natural productsthat promote health and well-being shapes our approach
to expansion through acquisitions, strategic partnerships
and investments.

Tom Hallam, Chief Financial Officer: “Key to our strategy
of value creation is a particular focus on areas where
we can deliver winning solutions for our customers. In the last
four years and fully aligned with our 2020 strategy, Givaudan
has announced the acquisition of nine companies, eachof which supports our strategic priorities of expanding ouroffer in Naturals, Active Beauty and Integrated Solutions.”
Givaudan’s recent acquisitions support the 2020 strategy inmultiple ways: expanding upon existing capabilities, adding toour ability to offer more natural and integrated solutions,
opening access to new channels and technologies, and bringing
us closer to local and regional customers.

Acquisition update: 2020 Strategy in motion

2014

2016

Soliance
Active Beauty

Spicetec
Naturals
Integrated Solutions

2015

Induchem
Active Beauty

1. Not yet completed.
2. Proforma 2018, including Naturex.

2017

Activ International
Natural flavours
Vika B.V.
Natural flavours

2018

Centroflora Nutra
Naturals

Approx.

CHF

Expressions Parfumées
L&R Fragrancesof incremental
revenues ²

Naturex
Naturals
H&W
Active Beauty

CHF

2.5 billion

invested inacquisitions

Albert Vieille ¹
Naturals
Aromatherapy

In both divisions, our acquisitions are fully aligned with our 2020 strategic priorities:
Naturals, Health and well-being, Active Beauty, Integrated solutions, local & regional customers

Givaudan – 2018 Highlights

1 billion

Acquisitions

19

Evolving and enriching our unique culture

Givaudan views each acquisition as an opportunity to grow inmany different ways. Above and beyond the business case for
expanding our existing capabilities and customer base,acquisitions bring a strong, synergistic cultural dimension:
new ways of working, an increased sense of entrepreneurship,
greater agility and customer focus. We are equally committed
to ensuring that all new employees quickly understandGivaudan’s unique culture and DNA while enriching it in new
ways that nurture our success.

Givaudan today:
shaped by historic acquisitions

Our historic buyout of Esrolko in 1948 created the twomain pillars of flavours and fragrances upon which
Givaudan continues to thrive today. Our own acquisitionby the Swiss multinational Hoffmann La Roche in the
1960s led to the 1992 merger combining Roure’s legendary
success in luxury perfumes and naturals with Givaudan’sexpertise in functional fragrances, synthetics and flavours.
Our journey then led us to acquire TasteMaker in 1997,
securing our US expansion, and to our transformativeacquisition of Quest International in 2007, bringing
Givaudan to the fore of the flavour and fragrance industry
by adding expertise, scale and global reach.

As we continue our journey towards 2020, acquisitions
and investments will quite naturally continue to play a rolein our strategy of value creation for customers, employees
and shareholders.

Broadening our naturals portfolio in Flavours through acquisitions

Spicetec

Activ International

Vika

Centroflora Nutra

Naturex

Extends ourportfolio of spices,
seasoning blends,
natural solutions
and organic
ingredients.

Broadens our
extract offering,particularly witha portfolio of
marine extracts
and natural
seafood solutions.

Strengthens ourcapabilities inculinary fonds
and stocks, madefrom naturalingredients.
Expands ourcheese natural
capabilities witha new range ofcheese powders.

Expands ourbotanical extractand dehydrated
fruit juice offering
under themanagement of
a comprehensive
sustainability
programme.

Significantly
enhances ourcapabilities
and portfolio inbotanical extracts
and natural
solutions, andprovides access tonatural colours,preservatives andphyto actives.

Givaudan – 2018 Highlights

20

A Sense of Tomorrow

A Sense of Tomorrow
Building a sustainable future

Our approach engages customers
on sustainability and helps themmeet their goals.
Meeting today’s needs without compromising theinterests of future generations has long been key to ourbusiness model. Mounting challenges, particularly interms of climate change, have driven us to intensify ourefforts. We are working hard to identify longer-term risks,
opportunities and ways to measure and quantify thedifference we’re making.
Consumers are increasingly aware of the unprecedentedsocial and environmental challenges created by climate change,

Sourcing for Shared Value
Givaudan depends on natural resources and the people
who grow them, and producing raw materials should
promote stability for both humans and the environment.
Our approach to meeting our goal of sourcing all natural
raw ingredients responsibly brings new value to those
involved and is based on three practices:
Responsible Sourcing means working with and auditing
suppliers and assessing supply chains to drive complianceand continuous improvements in health and safety, social,environmental and business integrity practices as definedin our Responsible Sourcing Policy.
Sourcing at Origin focuses on direct collection networks
and partnerships with farmers, distillers and producergroups to secure the long-term supply of ingredients
while boosting the local economy with stable incomes.
Social and environmental projects help build moresecure futures for the Communities at Source andtheir environments.

Givaudan – 2018 Highlights

population growth, resource scarcity and poverty. They areconcerned about the future of the planet and their own
well-being, and demand that companies be more transparent
about how they operate. Business performance is now
inextricably linked to sustainability. Our approach helps
customers create products that set them apart, addressing
consumer demand.
‘A Sense of Tomorrow’ is a framework that extends our vision
to 2030 and beyond. It sets new performance targets andprovides structures for designing innovative products that
contribute to a sustainable world. Its initiatives will help us
secure the longevity of our business while supporting the ruralcommunities that grow the over 10,000 raw materials essential
to our work. We strive to go beyond responsible growth andbenefits for our shareholders: we target long-term success forour customers, consumers, society and the planet.

Innovating Responsibly
Givaudan has always pursued a culture of innovation,
exploring timely questions in sensory experience. Today’s
most pertinent questions surround sustainability: thecuriosity that has always driven us is helping us to findanswers. We look to make sustainability part of every
breakthrough and add value by enhancing researchand developing products that benefit both society andthe environment.
With Naturals, we develop alternative sources of key raw
materials, helping protect fragile natural resources. Enabling
dietary shifts towards plant-based foods and promoting
odour’s positive impact can help promote Health andwell-being. Efforts in Sustainable Processes evaluate andimprove the sustainability of our production methods.
Innovating Responsibly means considering the impactof our products and services on society and theenvironment and leading change for the better by working
to benefit both.

A Sense of Tomorrow

Valu e
red
rS
ha

ns

fo

po

A ‘Sense of Tomorrow’ is another step in our long history ofhigh ethical standards in our interaction with all stakeholders.
The approach helps make Givaudan the most trusted partner intaste and scent, ensuring that our 250-year journey of passion
and performance continues, delighting people with uniquesensory experiences they can feel good about.

esgRThis drive supports our own objectives, but also addresses theUnited Nations Sustainable Development Goals. In focusing ourown priorities on global aspirations such as dietary shifts,
health and well-being and environmental protection, we show
our commitment to sustainability and our creativity andinnovation in achieving it. Customers can be confident that our
products are produced responsibly.

ople and Partn
r Pe
ers
Ou
ur Enviro
O
r
o
nm
gf
en
tin
t
Ac

I n n o v ati n‘A Sense of Tomorrow’ rests on the three pillars of
Sourcing for Shared Value, Innovating Responsibly and Acting
for Our Environment. Initiatives target our supply chains,
investment in innovative new products, a reduction of
our carbon footprint and climate change mitigation. But wecannot do this alone. It would not be possible without a focus
on our people and partners, both internal and external toGivaudan: managing the talent of those who are passionate
about their work and committed to creating a sustainable
society is key to meeting our goals. Choosing like-minded
partners is essential.

21

ib

ly

r
Sou

cin

g

Meeting needs today. Defining what’s next.

Our Sustainability Approach2018 Sustainability Progress Review

Acting for Our Environment
We are improving operational processes to reduce ourenvironmental footprint and contribute to climate change
mitigation: our targets support the drive to limit anincrease in temperature.
We will reduce absolute Scope 1 and 2 greenhousegas emissions by 30% and target a 20% drop in Scope 3
emissions 2015 – 2030. We aim for 100% renewableelectricity by 2025 and a 4% year-on-year average
reduction in waste. We are reviewing water reduction
targets after reaching one of them three years early.
Since a product’s real footprint includes every step in the
supply chain, we also help suppliers reduce their impact,
minimising the overall environmental effect. This has
a direct, positive impact on local producer communities
and the supply of the natural ingredients we rely on.
All these efforts help cut our GHG emissions, waste
production, water consumption and support our shift torenewable electricity.

Our People and Partners
Our goals can only be met with the help of employees
and partners who are dedicated to sustainability.
That is why we support people of all backgrounds, genderand origin, making sure our staff reflects the world inwhich we operate. We target a gradual shift in the mix ofnationalities and genders in our management teams, thus
leading to steady, sustainable change, reinforcing our
inclusivity and supporting our business goals.
Safety, health and well-being are targeted throughawareness campaigns and training, while talent is developed
through an approach embedded in a culture of continuous
learning and curiosity.
Meeting sustainability goals is complicated by diverse
challenges and effective solutions can only be found byworking with partners. Cooperation with suppliers,
associations and non-profit organisations helps us moveahead in an efficient, mutually beneficial way.

Givaudan – 2018 Highlights

22 Megatrends

Megatrends
Positioned well in a fast-changing environment

Global megatrends express
society shifts and rapidlychanging consumer behaviours.
Givaudan is embracing these
global shifts as opportunities
to ensure business resilienceand create additional value
for our customers.

Global trends

A growing
customer base …

–– Growing population and wealth inhigh growth markets–– Shift from rural to urban areas–– Increased disposable incomes… living longer andmore responsible lives …

–– Ageing population–– Overweight and obesity morewidespread–– Consumers demanding transparency… in an increasinglyinterconnected world–– Rising interconnectivity and fasterexchange of information–– Social media transports new trends
faster and wider

Givaudan – 2018 Highlights

Megatrends 23

Impact on Flavours

Impact on Fragrances

Givaudan’s positioning–– Rise in spending on processed
and ready-made foods withincrease in disposable incomes–– Expanding middle class driving
demand for premium andexclusive products–– Focus on key targeted areas
with highest growth–– Local and regional brands
gaining relevance–– Increased spending in personalcare and household products–– Development of speciality
retailers–– Demand for good tastingproducts with reduced content
of fat, sugar and salt–– Increased focus on organic,
natural ingredients, natural
flavours–– Local strategy adapted to highgrowth markets–– Targeted talent and capital
expenditure investments–– Increasing demand for unique,sensorial and visual experiences–– Innovative resources dedicatedto research in naturals–– Growing demand for cosmetics
in high growth markets–– Targeted acquisitions in
Naturals, Health and well-being
and Integrated solutions ¹–– Higher demand for natural andsustainably sourced raw materials–– Consumer demand for clean andclear labels–– Increased consumer
empowerment–– Bloggers play important role inshaping opinions–– Digitalisation to identify andexploit consumer insights–– Reduced time-to-market for
new products–– Rising power of consumers who
are dictating trends–– Product innovation to capture
freshness, e.g. FreezeFrame�–– Increased demand forconvenience food–– Increased demand for new
products, quicker–– Innovation and research iningredients and encapsulation

1.	Relevant acquisitions comprise Spicetec, Activ International, Vika B.V., Centroflora Nutra, and Naturex.

Givaudan – 2018 Highlights

24

Strategic value creation24

Corporate governanceand compensation

Givaudan – 2018 Highlights

Corporate governance: highlights 25

Corporate governance: highlights
Ensuring proper checks and balances

The Governance report is alignedwith international standards
and has been prepared inaccordance with the ‘Swiss Codeof Obligations’, the ‘Directive on
Information Relating to Corporate
Governance’ issued by the
SIX Swiss Exchange and the‘Swiss Code of Best Practicefor Corporate Governance’ issued
by economiesuisse.
Group structure and shareholders

Givaudan SA, the parent company of the Givaudan Group,with its registered corporate headquarters at 5 Chemin de laParfumerie, 1214 Vernier, Switzerland (‘the Company’), is a‘société anonyme’, pursuant to art. 620 et seq. of the Swiss
Code of Obligations. It is listed on the SIX Swiss Exchange
under security number 1064593, ISIN CH0010645932.
The Company does not have any publicly listed subsidiaries. The
list of principal consolidated companies, their domiciles and theshareholding is presented in appendix page 208 to theconsolidated financial statements of the 2018 Financial Report.
Note 1 to the consolidated financial statements as well as note
3 to the statutory financial statements offer more details
regarding the structure of the Group. All unlisted subsidiaries
are wholly-owned, unless otherwise indicated in notes 3 and 5
to the statutory financial statements mentioned above.
To the knowledge of the Company, the following were the only
shareholders holding more than 3% of the share capital ofGivaudan SA as at 31 December 2018 (or as at the date of theirlast notification under article 20 of the Stock Exchange Act).

Significant shareholders
2018

in %

Beneficial owners
William H. Gates III – Cascade Investment
MFS Investment Management
BlackRock Inc
Nominees
Nortrust N ominees Ltd.
Chase Nominees Ltd.
Messieurs Pictet & Cie.

13.86
5.04
5.02
15.04
6.36
4.54

The Company has not entered into any shareholder
agreements with any of its significant shareholders.

Capital structure

Ordinary share capital
As at 31 December 2018, the Company’s ordinary share capitalamounted to CHF 92,335,860 fully paid in and divided into
9,233,586 registered shares with a par value of CHF 10.00 each.
The market capitalisation of the Company at 31 December 2018
was CHF 21,015,641,736. The company's conditional sharecapital is described in the 2018 Governance report on page 101
in the 2018 Integrated Annual Report.
Shares and participation certificates
The Company has one class of shares only. All shares areregistered shares with a par value of CHF 10.00 each. Subject tothe limitations described below, all shares have the same rights
in all respects. Every share gives the right to one vote and to an
equal dividend.
Limitations on transferability and nominee registrations
At the Annual General Meeting of shareholders on
20 March 2014, the previously existing registration and voting
rights restrictions were abolished. Today, the Company nolonger has limitations on transferability of shares.
Based on a regulation of the Board of Directors, nominee
shareholders may be entered with voting rights in the shareregister of the Company for up to 2% of the share capital
without further condition, and for more than 2% if they
undertake to disclose to the Company the name, address,
nationality and number of shares held by the beneficial owners.

Givaudan – 2018 Highlights

26

Corporate governance: highlights

Board of Directors

Each of the seven Board members has an in-depth
knowledge of his or her relevant areas of expertise andcontributes to the Board competencies. In addition, theBoard’s knowledge and diversity of experience areimportant assets in leading a company of Givaudan’s sizein a complex and fast-changing environment.

Board of Directors, its committees and election dates 2018

Board of Directors
Calvin Grieder
Chairman
Swiss
Born 1955 in the USA
Member since 2014

Prof. Dr-Ing. Werner Bauer
German and Swiss
Born 1950
Member since 2014

Victor Balli
Swiss
Born 1957
Member since 2016

Lilian Biner
SwedishBorn 1962
Member since 2011

Michael Carlos
FrenchBorn 1950
Member since 2015

Ingrid Deltenre
Dutch and Swiss
Born 1960
Member since 2015

Thomas Rufer
Swiss
Born 1952
Member since 2009

Audit Committee

Compensation Committee

Thomas Rufer (Chairman), entire year
Lilian Biner, entire year
Victor Balli, entire year

Prof. Dr-Ing. Werner Bauer (Chairman), entire year
Ingrid Deltenre, entire year
Victor Balli, entire year

– A ssists the Board in its oversight responsibilities withrespect to financial reporting– Ensures effectiveness and efficiency of internal control,risk management and compliance systems– A ssesses and overviews the internal and external
audit processes– Reviews and recommends the compensation policies tothe Board– Approves the remuneration for the Executive Committee– Prepares the Compensation Report

Nomination and Governance Committee

Innovation Committee

Calvin Grieder (Chairman), entire year
Ingrid Deltenre, entire year
Michael Carlos, entire year

Michael Carlos (Chairman), entire year
Calvin Grieder, entire year
Prof. Dr-Ing. Werner Bauer, entire year

– A ssists the Board in applying principles of good
corporate governance– Prepares appointments to the Board and the
Executive Committee– A ssists the Board in scientific matters relating to theflavours, fragrances and cosmetics Industry– Identifies opportunities, proposes and screens potential
innovation partners

Givaudan – 2018 Highlights

Corporate governance: highlights 27

Executive Committee

The Executive Committee, under the leadership of the Chief
Executive Officer, is responsible for all areas of operational
management of the Company that are not specifically reservedto the Board of Directors.
The Chief Executive Officer is appointed by the Board of
Directors upon recommendation of the Nomination
Committee. Subject to the powers attributed to him, he has
the task of achieving the strategic objectives of the Company
and determining the operational priorities. In addition, heleads, supervises and coordinates the other members of the
Executive Committee, including convening, preparing andchairing the meetings of the Executive Committee.

The members of the Executive Committee are appointed by the
Board of Directors on recommendation of the Chief Executive
Officer after evaluation by the Nomination Committee. The
Executive Committee is responsible for developing theCompany’s strategic as well as long-term business and financial
plans. Key areas of responsibility also include the management
and supervision of all areas of the business development on an
operational basis, and approving investment decisions.

Members of the Executive Committee

Gilles Andrier
Chief Executive
Officer
FrenchBorn 1961
Appointed in 2005

Louie D’Amico
President Flavour
Division
US american
Born 1961
Appointed in 2018

Maurizio Volpi
President Fragrance
Division
ItalianBorn 1969
Appointed in 2015

Simon Halle-Smith
Head of Global
Human Resources and EHS
BritishBorn 1966
Appointed in 2015

Willem Mutsaerts
Head of Global
Procurement andSustainability
Dutch
Born 1962
Appointed in 2015

Anne Tayac
Head of Givaudan
Business Solutions
FrenchBorn in 1968
Appointed in 2016

Tom Hallam
Chief Financial
Officer
British and Swiss
Born 1966
Appointed in 2017

Auditors

At the Annual General Meeting of shareholders on 26 March
2009, Deloitte SA was first appointed as Group and statutory
auditor of Givaudan SA and its affiliates and has held the audit
mandate since that time. At the Annual General Meeting ofshareholders on 22 March 2018, Deloitte SA was reappointed as
statutory auditor for the business year 2018. Since March 2016,
the responsible lead auditor for the Givaudan audit at Deloitte
has been Ms Karine Szegedi Pingoud, Partner.

www.givaudan.com– our company –corporate governance	2018 Integrated Annual Report – Governance Report –pages 99 – 117

Givaudan – 2018 Highlights

28 Compensation: highlights

Compensation: highlights
Attract, motivate and retain

Givaudan aims to attract,
motivate and retain a diverse
pool of highly talented people
to sustain its leadership
position within the flavour
and fragrance industry.
The Compensation Committee supports the Board of Directors(Board) in establishing and reviewing compensation policies.
It regularly reviews Company-wide programmes in regard
to base salary, pension and benefit plans. The Compensation
Committee also annually reviews and approves theperformance targets and related payouts under the annual
incentives and share-based long-term incentives, while theapplicable performance criteria are set by the Board.
The Compensation Committee is also responsible forreviewing and approving individual compensation andbenefits of each Executive Committee member as well asrecommending compensation for the Board.
The Compensation Committee consists of three independent
members of the Board and is currently chaired by Prof. Dr-Ing.
Werner Bauer. The Chief Executive Officer is regularly invited toCompensation Committee meetings. The Head of Global Human
Resources acts as secretary of the Compensation Committee.
The Chairman of the Compensation Committee may invite otherexecutives as appropriate. However, executives do notparticipate in discussions regarding their own compensation.
The Articles of Incorporation of Givaudan include rules on theprinciples applicable to performance-related pay and to theallocation of equity securities, convertible rights and options(Arts. 23 – 25), additional amounts for payments to Executive
Committee members appointed after the vote on pay at
the shareholders’ meeting (Art. 27), loans, credit facilities andpost-employment benefits for the Executive Committee and
Board (Arts. 30 and 31) and the vote on pay at the shareholders’meeting (Art. 26).

Givaudan – 2018 Highlights

Specific activities in 2018

As previously reported, the Compensation Committee undertook
a comprehensive review of the Performance Share Plan in 2017.
Accordingly, changes to the PSP payout matrix were introduced
in 2018. Further details are provided in section 3.7 of theCompensation report in the 2018 Integrated Annual Report.
In 2018 as part of the regular annual process outlined above,
the Compensation Committee reviewed the compensation levels
and decided to implement some changes to the compensation
mix from 2019. The changes have been decided upon withdue consideration of our compensation principles outlined in
section 2. Further information on the rationale for the changes
is detailed in section 3.3 of the Compensation report in the 2018
Integrated Annual Report.
Finally and as indicated in section 3.8 of the Compensation
report, in 2018 Givaudan benefit plans for all employees werereviewed and changes implemented to reflect market practiceand better ensure future pension entitlements.

Compensation of the Executive Committee

In 2018, total compensation reported remained stablecompared to 2017 on a per Executive Committee member basis.
In 2018, the overall total Executive Committee compensation
reduced due to the smaller Executive Committee size, i.e. 9.5
full time equivalent members in 2017 versus 7.9 full timeequivalent members in 2018 (including the CEO and taking into
consideration partial year compensation for those members
who left and joined the Executive Committee).
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 2018.
Members of the Executive Committee that stepped down
during 2018 did not receive any special compensation as aresult of their departure from the Company.
The fixed and long term variable compensation approved for2018 was CHF 17,000,000 (2017: CHF 19,800,000).

Compensation: highlights

29

Executive Committee compensation summary
Executive
Executive
Committee members Committee members
Gilles Andrier(excluding CEO) ¹(excluding CEO) ²
CEO 2017
2018
2017

Total
2018

Total
2017

in Swiss francs

Gilles Andrier
CEO 2018

Base salary

1,058,023

1,045,952

3,194,282

3,970,375

4,252,305

5,016,327

571,766

445,076

947,880

1,048,011

1,519,646

1,493,087

Pension benefits ³
Other benefits ⁴
Total fixed compensation
Annual incentive ⁵
Number of performance shares
granted ⁶
Value at grant ⁷

139,048

114,688819,837

800,451

958,885

915,139

1,768,837

1,605,716

4,961,999

5,818,837

6,730,836

7,424,553

954,070

977,142

1,824,033

2,513,556

2,778,103

3,490,698

1,446

1,777

3,263

5,549

4,709

7,326

2,882,312

2,881,583

6,504,138

8,998,258

9,386,450

11,879,841

Total variable compensation

3,836,382

3,858,725

8,328,171

11,511,814

12,164,553

15,370,539

Total compensation

5,605,219

5,464,441

13,290,170

17,330,651

18,895,389

22,795,092

453,000

442,000

988,000

1,413,000

1,441,000

1,855,000

Employer social security ⁸

1.	Represents (a) full year compensation of five Executive Committee members, (b) partial year compensation of two outgoing members and c) partial year compensation of
the new Flavour Division President.
2.	Represents full year compensation of eight Executive Committee members and partial year compensation of one outgoing Executive Committee member.
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.	2018 Performance shares vest on 15 April 2021, 2017 Performance shares vest on 15 April 2020.
7.	Value at grant calculated according to IFRS methodology and based on 100% achievement of performance targets.
8.	2018 estimated social security charges based on 2018 compensation; 2017 estimated social security charges based on 2017 compensation.

The annual incentive, short term variable compensation
amount for 2018 was CHF 2,778,103 and will be submitted
for approval at the 2019 Annual General Meeting (2017:
CHF 3,490,698).

Each Board member receives an additional amount of
CHF 10,000 to cover out-of-pocket expenses. This amountis paid for the coming year in office. The RSUs are also
granted for the same period.

Compensation of the Board of Directors

No additional compensation or fees were paid to any memberof the Board. No Board member or related parties had any loan
outstanding as of 31 December 2018.

Compensation of Board members consists of Director fees,
Committee fees and Restricted Share Units (RSUs). Fees arepaid 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 theoffering of 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 theunderlying Givaudan shares), thereby aligning with shareholderinterests over the longer term. Board members are entitled toreceive Givaudan shares regardless of membership status sothat, for example, if re-election does not occur during the
restriction period, awarded RSUs are retained by the respective
Board member. Such practice has been implemented in linewith best practice in support of Givaudan’s commitment toensuring Board independence.
The Chairman of the Board does not receive any additional
Board Membership fees. Similarly, a Committee Chairman does
not receive any additional Committee Membership fees.

During the reporting period, no special compensation ofmembers of the Board who left the Company during thereporting period was incurred.
The compensation paid to the Board members for theperiod between the 2017 and 2018 Annual General Meetings(CHF 2,834,440) is again within the amount approvedby shareholders at the 2017 Annual General Meeting(CHF 2,950,000). Amounts approved at the 2018 Annual
General Meeting (CHF 2,950,000) will be paid by the endof the year in office and validated in the 2019 Compensation
Report. Such approved and paid amounts will differ fromthose shown in the Board compensation summary table
which, according to the Ordinance against Excessive
Compensation at Listed Stock Companies (OaEC), must
include compensation paid in the reporting year.

Givaudan – 2018 Highlights

30

Compensation: highlights

Board of Directors compensation summary
2018
in Swiss francs

Calvin Grieder
Chairman ⁵

Victor
Balli ⁵

Prof. Dr-Ing.
Werner Bauer ⁵

LilianBiner ⁵

Michael Carlos ⁵

Ingrid Deltenre ⁵

Thomas Rufer ⁵

Total
2018¹

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

292

73

73

73

73

73

73

730

Value at grant ⁴582,044

145,511

145,511

145,511

145,511

145,511

145,511

1,455,110

Total
compensation

1,047,044

295,511

310,511

270,511

310,511295,511

300,5112,830,110

1.	Represents total compensation for the Board of Director paid in respect of the reporting year, reported in accordance with the accrual principle.
2.	Represents Director and Committee fees paid in respect of the reporting year, reported in accordance with the accrual principle.
3.	RSUs blocking period ends on 15 April 2021.
4.	Economic value at grant according to IFRS methodology, with no discount applied for the blocking period.
5.	The function of each member of the Board of Directors are indicated on pages 104 – 105 in the Corporate Governance section of the 2018 Integrated Annual Report.

Estimated social security charges based on 2018 compensation amounted to CHF 203,000 (2017: CHF 205,000).

Ownership of Givaudan securities

Executive Committee
The Chief Executive Officer and other members of the
Executive Committee, including persons closely connected tothem, held 5,097 Givaudan shares.
No member of the Executive Committee held any share options
or option rights as at 31 December 2018 (31 December 2017: nomember of the Executive Committee held any share options or
option rights).
One person closely connected to a member of the Executive
Committee owned 279 unvested Performance Shares as at
31 December 2018.
The Company is not aware of any other ownership of shares,
share options/option rights, RSUs or Performance Shares as per
31 December 2018 by persons closely connected to members of
the Executive Committee.
Executive Committee: ownership of Givaudan securities
2018
in numbers

SharesGilles Andrier, CEO

2,400

4,909

438

1,304

Tom Hallam

Unvested
performance shares

Louie D'Amico

193

1,131

Maurizio Volpi

1,257

2,350

Simon Halle-Smith

260

1,403

Willem Mutsaerts

440

1,418

Anne Tayac

109

1,261

Total 2018

5,097

13,776

Total 2017

6,154

15,945

Givaudan – 2018 Highlights

Board of Directors
As per 31 December 2018, the Chairman and other Board
members, including persons closely connected to them held
3,906 Givaudan shares in total.
The Company is not aware of any other ownership of shares,
share options/option rights, RSUs or Performance Sharesas per 31 December 2018 by persons closely connected tomembers of the Board.
Board of Directors: ownership of Givaudan securities
2018
in numbers

Calvin Grieder, Chairman

SharesUnvested RSUs

210

737

Victor Balli
Prof. Dr-Ing. Werner Bauer

248
1,180

248

587

248

Michael Carlos

1,012

248

Ingrid Deltenre

117

248

Thomas Rufer

800

248

Total 2018

3,906

2,225

Total 2017

3,360

2,041

Lilian Biner	
w ww.givaudan.com – corporate goverance –rules and policies	2018 Integrated Annual Report – Compensation Report –pages 85 – 97

Strategic value creation 31

Financialstatements

Givaudan – 2018 Highlights

32 Consolidated financial statements

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

2018

2017

Sales

5,527

5,051

Cost of sales(3,198)(2,801)Gross profit

2,329

2,250

as % of sales

42.1%

44.5%
(669)

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

Selling, marketing and distribution expenses(716)

Research and product development expenses

(477)

(424)

Administration expenses

(208)

(178)

Share of (loss) profit of jointly controlled entities

5–

Other operating income

63

42

Other operating expense

(113)

(152)

Operating income

883

869

16.0%

17.2%

as % of sales
Financing costs

(55)

(42)

Other financial income (expense), net

(56)

(32)

Income before taxes

772

795

Income taxes

(109)

(75)

Income for the period

663

720

Attribution
Income attributable to non-controlling interests–

Income attributable to equity holders of the parent

663

720

12.0%

14.2%

Earnings per share − basic (CHF)

71.92

78.18

Earnings per share − diluted (CHF)

71.36

77.54

as % of sales

Givaudan – 2018 Highlights

Consolidated financial statements 33

Consolidated Statement of Comprehensive Income
For the year ended 31 Decemberin millions of Swiss francs

2018

2017

Income for the period

663

720

3

Items that may be reclassified to the income statement
Cash flow hedges
Movement in fair value, net(4)

Gains (losses) removed from equity and recognised in the consolidated income statement

85Movement on income tax––

Exchange differences arising on translation of foreign operations
Movement in fair value arising on hedging instruments of the net assets in foreign operations
Change in currency translation
Movement on income tax

37
(140)

63

–

–

Items that will not be reclassified to the income statement
Defined benefit pension plans
Remeasurement gains (losses) of post employment benefit obligations

162

55

Movement on income tax

(35)

(38)

Other comprehensive income for the period

28

88

Total comprehensive income for the period

691

808

Attribution
Total comprehensive income attributable to non-controlling interests–

Total comprehensive income attributable to equity holders of the parent

691

808

Givaudan – 2018 Highlights

34

Consolidated financial statements

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

2018

2017

Cash and cash equivalents

423

534

Derivative financial instruments

11

16

Financial assets at fair value through income statement42Accounts receivable – trade

1,253

1,147

Inventories

1,098

902

Current tax assets

4132

Prepayments

53

123

Other current assets
Current assets
Derivative financial instruments

238

98

3,121

2,854

2

1

Property, plant and equipment

1,759

1,579

Intangible assets

3,999

2,482

Deferred tax assets

208

207

Post-employment benefit plan assets

22

21

Financial assets at fair value through income statement

61

63

Jointly controlled entities

33

33

Investment property

2

16

Other long-term assets

61

53

Non-current assets

6,147

4,455

Total assets

9,268

7,309

Short-term debt

4308

Derivative financial instruments

12

12

Accounts payable – trade and others

719

662

Accrued payroll and payroll taxes

178

149

Current tax liabilities

95

49

Financial liability – own equity instruments

93

93

Provisions

24

57

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

225

195

1,350

1,525

43

60

3,266

1,300

Provisions

73

67

Post-employment benefit plan liabilities

490

644

Deferred tax liabilities

238

99

Other non-current liabilities

8576

Non-current liabilities

4,195

2,246

Total liabilities

5,545

3,771

Share capital
Retained earnings and reserves
Own equity instruments

92

92

5,811

5,682

(142)

(157)

Other components of equity(2,051)(2,079)Equity attributable to equity holders of the parent

3,710

3,538

Non-controlling interests

13

Total equity

3,723

3,538

Total liabilities and equity

9,268

7,309

Givaudan – 2018 Highlights

Consolidated financial statements 35

Consolidated Statement of Changes in Equity
For the year ended 31 December

2018
in millions of Swiss francs

Balance as at 1 January

Retainedearnings
Share Capital and reserves

92

Income for the period

5,682

Own equity
instruments

Cash flow
hedges

(157)

(65)

Remeasurement of post
Currency employmenttranslation
benefitdifferences
obligations(1,456)

(558)

663

663

Dividends paid

(534)

Movement on own equity
instruments, net

4

(103)

127

4

(103)

127

691

2017
in millions of Swiss francs

Balance as at 1 January

92

(534)

15

5,811

(142)

Retainedearnings
Share Capital and reserves

92

Income for the period

5,477

(61)

Cash flow
hedges

(109)

(73)

15

720

Dividends paid

(515)

Movement on own equity
instruments, net

(519)

13

(506)

3,710

13

3,723

Remeasurement of post
Currency employmenttranslation
benefitdifferences
obligations

Equityattributable
to equity
holders of
the parents

Noncontrollinginterests

Total equity(1,519)

(575)

8

63

17

8

63

17

(48)

Net change in other equity
items
92

(515)

(48)

5,682

(157)

(65)

13

(431)

(1,559)720

Total comprehensive income
for the period

691
(534)

15

Own equity
instruments

Other comprehensive income
for the period

Balance as at 31 December–

13

Net change in other equity
items

663
28

(534)
15

Total equity

3,538
–

28

Non-controlling interests

Balance as at 31 December

Noncontrollinginterests

3,538
663

Other comprehensive income
for the period
Total comprehensive income
for the period

Equityattributable
to equity
holders of
the parents(1,456)

(558)

3,293

3,293

720

720

88

88

808

808

(515)

(515)

(48)

(48)

(563)

(563)

3,538

3,538

Givaudan – 2018 Highlights

36

Consolidated financial statements

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

2018

2017

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
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
Payments for investment property
Acquisition of subsidiary, net of cash acquired
Proceeds from the disposal of property, plant and equipment
Proceeds from disposal of investment property
Interest received
Dividends received from jointly controlled entities
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

663
109
42
69
883
127
125
10

720
75
29
45
869
114
104
2

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)

35
14
69
(52)
286
(107)
(125)
(29)
136
12
(113)
(73)
(53)
(10)
(45)
861
350
(17)
670
(705)
298
(24)
–
(7)
267
(515)
(248)
(191)
(53)
(1)
(224)
2

Givaudan – 2018 Highlights(1,694)
110
14
2
4
5
(3)
(3)
(1,859)
(95)
(16)
534
423

3
2
–
35
(2)
(429)
184
22
328
534

Our reporting suite

Readers are advised to consult our entire reporting suite to get a complete overview:2018 Integrated Annual Report
Available in English– PDF and Online HTML from 25 January 2019
– Print from 28 March 2019
– www.givaudan.com – media – publications– w ww.givaudan.com – investors –online annual report

Content
Offers a holistic explanation of our value
creation, financial and non-financial capitals
and performance, including our Governance,
Compensation and Financial reports. The
online report offers an succinct overview, easy
access to the various chapters of the reportand a full download centre.

2018 Highlights
Available in English, French and German– PDF and print from 28 March 2019
– www.givaudan.com – media – publications

Content
Business and financial highlights in addition to
the Chairman and CEO reviews and thehighlights of the Governance andCompensation reports.

Our Sustainability Approach
Available in English– PDF from 25 January 2019– w ww.givaudan.com – sustainability –publications

Content
Offers a strategic overview of A Sense ofTomorrow, the approach for each of thethree sustainability focus areas, and related
issues such as stakeholder engagement andmaterial topics.

2018 Sustainability Progress Review
Available in English– PDF from 28 March 2019– w ww.givaudan.com – sustainability –publications

Content
Offers case studies and progress data for thethree focus areas of our sustainability approach
as well as eco-efficiency targets versus
progress. The GRI Content Index and external
assurance of sustainability data is included inthis document.

To order publications: www.givaudan.com – media – publications

GivaudanFoundation2018 Annual Report
Available in English
PDF from 28 March 2019www.givaudan-foundation.org

The Givaudan Foundation is a non-profit
organisation created in 2013 as a result ofGivaudan’s desire to reinforce its commitment
towards the communities in which it operates.
The foundation’s purpose is to initiate andsupport projects as well as to grant donationsin the areas defined by its vision and mission.
One of the causes supported by thefoundation is to safeguard the future ofcommunities and their fragile environment.
There is a specific focus on three areas inwhich Givaudan as a company is alreadyengaged and where its expertise andexperience can be leveraged to make adifference: communities at source, blindness
and nutrition. The Givaudan Foundation
works closely with and relies on resources
provided by Givaudan to conduct and monitor
its projects. The Foundation also operates
with local partners to ensure the efficient
deployment of projects and their relevance tothose who are intended to benefit from them.

Givaudan – 2018 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

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The Givaudan 2018 Highlights are published in English, French and German.
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The Givaudan 2018 Highlights may contain forward-looking information.
Such information is subject to a variety of significant uncertainties, including
scientific, business, economic and financial factors. Therefore actual results
may differ significantly from those presented in such forward looking statements.
Investors must not rely on this information for investment decisions.
© Givaudan SA, 2019www.givaudan.com