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Half year investor conference 2020 Strategy

Half year investor conference 2020 Strategy 15
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NicolusNorton,Germany,Professional
Published Date:08-07-2017
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Half year investor conference 2020 Strategy 27th August 2015 1 Half year investor conference 2015 Half year results 2 2015 Half Year Results Financial summary Sales of CHF 2.2 billion, an increase of 1.3% on a like-for-like basis, briefs pipeline and win rate sustained at a high level Operating leverage and strong cost focus driving improved EBITDA margin Net income of CHF 339 million, up 11.2% versus 2014 Strong cash flow, on track to deliver on 2015 targets Net debt CHF 1,050 million, leverage ratio 23% Confidential and proprietary business information of Givaudan 3 27th August 2015 2015 Half Year Results Operating performance: Consistent improvement Gross 46.6% 46.5% margin Sales of CHF 2,184 million (2014: CHF 2,191 million) Gross margin of 46.5% compared to 46.6% EBITDA 566 (in million Swiss francs) in 2014, lower operational costs in Flavours and supply chain efficiencies, offset by impact of currencies 562 EBITDA of CHF 566 million, up 0.6%, driven by strong cost control. One off net non cash gain of CHF 20 million in 2015, compared to one-off gain of CHF 38 million in 2014 EBITDA margin of 25.9%, up from 25.6% in 2014 Operating income of CHF 428 million, up 1.6% from 2014, driven by higher EBITDA and lower amortisation of intangibles HY 2014 HY 2015 25.9% 25.6% EBITDA margin As % Underlying of sales 25.0% 23.9% EBITDA margin Confidential and proprietary business information of Givaudan 27th August 2015 4 2015 Half Year Results Net income: increasing by 11% as a result of continued strong operating performance Income before tax of CHF 381 million, up from CHF 376 million in 2014, driven by: Net income • Improved EBITDA In CHF million • Flat financial expenses 339 Effective tax rate of 11%, underlying tax rate of 19%, the same as in June 2014 Net income of CHF 339 million, or 15.5% of sales, versus 13.9% in 2014 Basic EPS of CHF 36.82, versus CHF 33.13 in 2014 305 HY 2014 HY 2015 Basic 36.82 33.13 EPS (CHF) Confidential and proprietary business information of Givaudan 27th August 2015 5 2015 Half Year Results Free cash flow: strong underlying performance Operating cash flow of CHF 341 million, up from CHF 218 million in 2014 Free cash flow In CHF million Working capital as a % of sales down slightly versus HY 2014 248 Total investments of CHF 57 million, including the completion of the facility in Nantong, China, compared to CHF 46 million in 2014 178 Net investments as % of sales were 3.4% in 2015, compared to 0.5% in 2014 HY 2014 HY 2015 As % 11.4% 8.1% of sales Confidential and proprietary business information of Givaudan 27th August 2015 6 2015 Half Year Results Leverage ratio: Continuing to de-leverage on a yearly basis • Leverage ratio of 23% as at June 2015 as a result of solid cash flow generation and despite currency impact on equity following the strengthening of the Swiss franc in Jan 2015 • Intention to maintain a medium term leverage ratio target below 25% • Company will exclude from equity definition any impact arising from changes in IAS 19 26% 24% 24% 23% 18% 17% Dec '12 Jun '13 Dec '13 Jun '14 Dec '14 Jun '15 th Confidential and proprietary business information of Givaudan 27 August 2015 7 2015 Half Year Results On track to deliver on our ambitious mid-term guidance 4.5 to 5.5% 14-16% Above 60% Best-in-class organic sales growth free cash flow as % free cash flow return EBITDA 2 1 per annum of sales in 2015 to shareholders Driven by a five-pillar strategy Developing markets Research and Health and wellness Sustainable sourcing Targeted customers development of raw materials and segments 1 FCF (free cash flow), above 60% return to shareholders whilst maintaining a leverage ratio of no more than 25% 2 Sales growth assumes a market growth of 2-3% Confidential and proprietary business information of Givaudan 8 27th August 2015 2020 Strategy Responsible growth. Shared success. 9 Executing our strategy 2010-2015 Increase footprint Expand beyond Deliver innovation Develop innovative in high growth Fragrances and to customers sourcing strategies markets Flavours New Fragrance molecules Origination programme Mako, Hungary Health and wellness taste Strong palette of Long-term partnerships solutions Cimanggis, Indonesia innovative Flavour Fragrance Ingredients ingredients Integrated beverage Nantong, China joint venture in China solutions New technologies Mumbai, India Active cosmetic New delivery systems Singapore ingredients São Paulo, Brazil Buenos Aires, Argentina Pedro Escobedo, Mexico Dubai, UAE New offices Pakistan, Nigeria, Myanmar • SAP • Lean manufacturing Operate with excellence • Supply chain management • Givaudan Shared Services Confidential and proprietary business information of Givaudan 10 27th August 2015 Mega trends Our consumer base is growing. Add date using "Insert" - "Header & Footer" Mega trends We are living longer and more responsibly. Add date using "Insert" - "Header & Footer" Mega trends Our world is interconnected. Add date using "Insert" - "Header & Footer" Our customers’ focus for their brands is consistent …whether global …or local/regional “We will introduce its “Everything our “We will continue to meet family standard of business has done has “We are developing transparency with the the health demands of been based on a new business practices consumers from release of its new ad commitment that grow both our entitled ‘Honesty’. The different regions and of respect for company and ad emphasizes the help consumers to live a the environment and communities, meeting healthy life.” company’s commitment to social people's desire for disclosing the ingredients responsibility.” more sustainable in its products.” products and creating a brighter future.” “Our business revolves “Our ambition for the around ordinary days, “Is committed to coming years is to win supporting cleanliness, increasing the “Healthy and tasty over another one billion health and comfort while nutritional value of natural food. Products consumers around the protecting our global gathered from nature our products whilst world by creating the environment. Dedicated improving taste and to nourish your well- cosmetic products that to creating a future full of being.” pleasure. We believe meet the infinite health, hope and in a balanced healthy diversity of their beauty happiness.” lifestyle and eating needs and desires.” habits, and we actively support their promotion.” Confidential information of Givaudan 27th August 2015 14 What do customers expect? Trust Creative Knowledgeable Partner Transparent 15 Confidential and proprietary business information of Givaudan 27th August 2015 A A Ad d dd d d d d da a at tte e e u u us s siiin n ng g g " " "I IIn n ns s se e er rrt tt" " " - - - " " "H H He e ea a ad d de e er rr & & & F F Fo o oo o ot tte e er rr" " " Sustainable Innovative Agile Insightful Collaborative Responsible Cost-effective Customers at the heart of our business Cu Cus st tomer omer Orders Orders Customer Partnership 16 Confidential and proprietary business information of Givaudan 27th August 2015 Vision To inspire emotion through our creations every day, everywhere, as we strive for a better tomorrow. 17 Confidential and proprietary business information of Givaudan 27th August 2015 Mission Together with our customers, we craft memorable experiences that bring moments of delight to consumers. 18 Confidential and proprietary business information of Givaudan 27th August 2015 A A Ad d dd d d d d da a at tte e e u u us s siiin n ng g g " " "I IIn n ns s se e er rrt tt" " " - - - " " "H H He e ea a ad d de e er rr & & & F F Fo o oo o ot tte e er rr" " " Responsible growth. Shared success. •Shared success. Responsible growth. Shared success. 20 Confidential and proprietary business information of Givaudan 27th August 2015 A A Ad d dd d d d d da a at tte e e u u us s siiin n ng g g " " "I IIn n ns s se e er rrt tt" " " - - - " " "H H He e ea a ad d de e er rr & & & F F Fo o oo o ot tte e er rr" " "