Creating for happier, healthier lives with love for nature. Let’s imagine together. 2020 Half Year Conference - Company proprietary information of Givaudan 19
Creating for happier, Creations healthier lives Communities Let’s imagine with love for nature. together with Let’s imagine customers that Let’s imagine together that all through our communities benefit together. creations more by working with people will enjoy Givaudan happier, healthier lives Nature People Let’s imagine together Let’s imagine together that we show our love that Givaudan is a place for nature in everything where we all love to be we do and grow Working to become a 2020 Half Year Conference - Company proprietary information of Givaudan 20
Creating for happier, healthier lives with love for nature. Let’s imagine together. Creations Nature Let’s imagine together with our customers that through our Let’s imagine together that creations more people will enjoy happier, healthier lives we show our love for nature in everything we do Contribution to our customers’ success Climate-positive business Before 2050, we will be a climate-positive business (scope 1, 2 & 3) By 2030, we will double our business through creations that contribute to happier, healthier lives Rethinking plastics Before 2030, we will replace all single-use plastics with eco-friendly alternatives across our sites and operations Communities People Let’s imagine together that Let’s imagine together that all communities benefit by working with Givaudan Givaudan is a place where we all love to be and grow Suppliers Inclusion By 2030, we will source all materials and services in a way that Before 2030, we will be an even more balanced and inclusive protects people and the environment company Communities where we source and operate Care By 2030, we will improve the lives of millions of people in Before 2025, we will improve how we care for all of our people communities where we source and operate 2020 Half Year Conference - Company proprietary information of Givaudan 21
Megatrends Influencing our business 2020 Half Year Conference - Company proprietary information of Givaudan 22
Megatrends Impacting 2025 strategy Consumer base is Living longer and more Sustainability is of COVID-19: growing consciously high concern E-commerce, self-care and localisation gain importance Trend Impact Asia and Africa Consumer Consumers will buy Consumers will buy • • • • leading the way behaviours are more consciously more online and changing Responsible increase spending • companies will act on self-care Localisation will be • even more important 2020 Half Year Conference - Company proprietary information of Givaudan 23
Trends Consumer base is growing Impact Asia and Africa are leading the way Rising consumption in emerging countries, especially in Asia and Africa Major CPGs and large customers will have a focus on middleweight cities in emerging markets The product offering must be adapted to demographic developments Src [1] UN; [2] McKinsey 24
Trends Living longer and more consciously Impact Consumer behaviour is changing Improved service models and focus on food service providers and private labels Beauty, health and hygiene products will experience strong demand Attention to ingredient labelling is growing and drives interest in transparency, boosting the naturals and clean label trend Need to adapt to evolving needs and expectations of elderly Src: Euromonitor, IMF, McKinsey 25
Trends Sustainability is of high concern Impact Consumers will buy more consciously. Responsible companies will act 74% of the companies feel very strong or strong pressure to adopt sustainable solutions [1] Sustainability will become a business imperative for many companies Companies will assess their whole supply chain on environmental footprint and take actions Src: [1] KcKinsey industry survey (N=30) 26
Trends Pandemic related trends Impact Consumers will buy more online and increase spending on self-care. Localisation E-Commerce will grow faster than expected will be even more and gain importance rapidly important Products and solutions supporting wellbeing will become even stronger Multinationals will respond with localisation of the production [1] ; supply chains need to find ways to overcome potential future supply and trade restrictions Src: [1] McKinsey industry survey (N=30); Euromonitor; EY GBG2020 27
Trends Customers Trends Impact Local and regional players are building F&B companies and ingredient providers consumer confidence and gaining relevance need to have tailored service models for as trusted brands. Small brands dominate local and regional customers as well as CPG growth [1] private labels, niche brands and food service providers The growth of private labels, food service providers and niche brands continues and Need to further invest into digital is taking up significant market shares capabilities throughout the value chain Customers recognise the importance of innovation The opportunity to differentiate through innovation and co-creation Increasing impact of digital collaboration 2020 Half Year Conference - Company proprietary information of Givaudan Src: [1] McKinsey 28
2025 strategy Committed to Growth, with Purpose 29
Strategy 2025 Committed to Growth, with Purpose Creations Nature We create inspiring solutions We show our love for nature GROWING for happier, healthier lives through impactful actions TOGETHER WITH OUR CUSTOMERS People Communities We nurture a place where we We bring benefits to all all love to be and grow communities that work with us Excellence, Innovation & Simplicity - in everything we do 4-5% GROWTH PURPOSE LINKED TARGETS >12% FCF
Where to play Three growth drivers Portfolio, customers and markets 31
Strategy 2025 Our growth drivers – Portfolio, Customers and Markets EXPAND THE PORTFOLIO Core business • Health, wellbeing, nutrition and • beauty FOCUSSED MARKET STRATEGIES Integrated solutions and delivery GROWING • systems TOGETHER Maximise mature market opportunities • WITH OUR CUSTOMERS Extend high growth market leadership • EXTEND CUSTOMER REACH Major CPGs and large customers • Local, regional and emerging • customers Private labels • Food service providers •
How to win Four growth enablers Creations, people, nature, communities 33
Creations We create inspiring products for happier, healthier lives Customer and consumer Digital enabled innovation Continued focus on preferred solutions innovating eco-systems and partnerships We will focus our creations on Smart creation and selection will We will expand and deepen strategic renewable, biodegradable and viable multiply our range of possibilities partnerships with innovative suppliers , natural solutions , especially in the area customers and other external Through digital consumer platforms of health and wellbeing partners we will connect to consumers to identify trends and preferences 2020 Half Year Conference - Company proprietary information of Givaudan 34
Nature We show our love for nature through impactful actions Creating for a more Sourcing for good Reducing environmental sustainable world footprints We will evolve our value proposition and We will strengthen our responsible We will continue successful initiatives and fuel success by anticipating our sourcing and traceability program as develop further leading actions in customers’ sustainability needs and well as drive supplier engagement on climate, water and forests offering a sustainable product environmental actions preservation portfolio We will work to replace single-use plastics with eco-friendly alternatives 2020 Half Year Conference - Company proprietary information of Givaudan 35
People We nurture a place where we all love to be and grow Everyone feels welcome, Caring for health and Building the leadership and valued and inspired well-being expertise of all our people Through being a leading employer for We will care for our people through We will accelerate new leadership diversity and inclusion we will better promoting employee programmes essentials, anticipate and innovate to understand the fragmented needs in our attract the workforce of tomorrow as Excelling our safety culture will make operating areas and provide holistic well as ensure the skills and our workplace safe - everyday, solutions competencies for now and for the everywhere future We will provide differentiated employment options and benefits as well as ensure transparent rewards and recognition 2020 Half Year Conference - Company proprietary information of Givaudan 36
Communities We bring benefits to all communities that work with us Doing business with our suppliers Leveraging Givaudan business as a in a responsible way force for good Together with our suppliers we will further embed We will empower our employees to create responsible sourcing by fostering high standards in connected communities and develop sustainable, health, safety, social, environmental and scalable solutions together to contribute to happier, business integrity to source all materials and healthier lives services in a way that protects people and the environment 2020 Half Year Conference - Company proprietary information of Givaudan 37
How we act Excellence, Innovation and Simplicity In everything we do 38
Strategy 2025 Excellence, Innovation & Simplicity - in everything we do Tailor-made service models will enable most Differentiated customer efficient processes in the relationship with our experience partners Expanded technology enabled collaboration will help to improve processes and our customer reach 01 02 We will further continue manufacturing Industry leading solutions automation and foster simplification of solutions and services and services 03 Leveraging existing and acquired capabilities to deliver improved performance We will provide outstanding service levels & Ensuring operational quality in everything we do reliability and efficiency Due to the increasing number of unforeseeable events that impact us and our partners, we will expand our business continuity and risk management measures to ensure the most reliable supply chain 2020 Half Year Conference - Company proprietary information of Givaudan 39
Louie D’Amico President Flavour Division 40
Strategy 2025 Flavour Division
Strategy 2025 Beverages Food and nutrition opportunity Savoury / Snacks Flavour & Taste 13.1 bn CHF Flavour Dairy & Taste Market Potential as of 2020 Sweet Goods + Givaudan market share as of 2020 Market potential as of 2020 Functional Functional Ingredients & Nutrition Functional 14.1 bn CHF & Nutrition Market Potential as of 2020 Nutrition (Givaudan scope of activities) 42 Source: Based on Givaudan internal estimates 2020 Half Year Conference - Company proprietary information of Givaudan
Strategy 2025 Food and nutrition market trends Consumer base is Living longer and more Sustainability is of COVID-19: growing consciously high concern E-commerce, self-care and localisation gain importance Trend Impact More opportunities Demand for Innovation (eg. • Accelerated digital • • • in high growth naturals, well- biotech and enablement markets being, transparency upcycling) • Increased demand Fully leverage and clean label for immunity & • expanded offering products Operations (eg. low wellbeing • carbon footprint • Local and agile factories) supply chain 2020 Half Year Conference - Company proprietary information of Givaudan 43
Strategy 2025 Strategic pillars to drive growth in Flavours Our Ambition Our ambition is to shape the future of food by becoming the co-creation partner of choice to our customers Our strategic pillars Where to play How to win New customer High growth Best in class Product Strategic segmentation & markets Operations Digital People product development sourcing partnerships offering 2020 Half Year Conference - Company proprietary information of Givaudan 44
Strategy 2025 Performance ambition – sales growth CHF 750m to CHF 1bn additional sales by 2025 4-5% CAGR% Best in class High growth New customer product markets segmentation offering & partnerships 2020 Half Year Conference - Company proprietary information of Givaudan 45
Where to play Best in class product offering 46
Best in class product offering Leveraging the full portfolio to reach our growth ambitions Health, Wellbeing Flavour & Taste and Nutrition Strengthen our core Build market leadership Naturals Space Flavour & Taste Natural Functional Ingredients Naturals Colouring Protein Preservatives Texturants Natural Nutritional Ingredients Microbiome Botanicals HW&N Space Integrated Solutions 2020 Half Year Conference - Company proprietary information of Givaudan 47
Best in class product offering Flavour & Taste Protein enablers Functional ingredients Health & Wellbeing (salt, sugar, fat) Naturals (incl. Nutritional Biotechnology) ingredients Integrated Solutions 48 2020 Half Year Conference - Company proprietary information of Givaudan
Where to play New customer segmentation & partnerships 49
Customer segmentation Delivering new ways to segment & partner to win with customers Leading Emerging Large Consumer Packaged Goods Local & Regionals* Private Label Food Service * incl. emerging customers and disruptive Opportunistic innovators 2020 Half Year Conference - Company proprietary information of Givaudan 50
Where to play High growth markets 51
High growth markets Our key focus countries and regions to capture growth Design Develop Commercial & Portfolio Innovation footprint Cost China Eastern Europe Distribution Network Regulatory South-East Asia India Africa & Middle East Deliver Digitalise Latin America Innovation & customer Localised Operations engagement Agile supply chain 4‘D’s Agile Operations Speed & Quality 2020 Half Year Conference - Company proprietary information of Givaudan 52
How to win Product development 53
Pioneering innovative & efficient product development Focussed on full recipe development Service models aligned Enabled by artificial with customer and intelligence and consumer needs digital tools Different end-to-end brief Digital tools to reinvent brief processes based on opportunity execution process and expand type customer reach Tailored approach to efficiently Artificial Intelligence to execute cost-driven and identify, resource, and manage innovation projects projects based on propensity to win 2020 Half Year Conference - Company proprietary information of Givaudan 54
How to win Strategic Sourcing 55
Strategic sourcing Ensure cost, quality and security of supply Expand, deepen Value Accelerate strategic digitally enabled relationship Leadership capabilities with innovative suppliers Robust programmes to strengthen traceability and sustainability credentials 2020 Half Year Conference - Company proprietary information of Givaudan 56
How to win Operations 57
Operations Become the industry’s operations lighthouse Flexible and Digital transformation optimised and automation of footprint supply chain and manufacturing processes Cost, quality Climate Business and service agenda Continuity leadership commitments Plan (CO 2 , water, and waste targets) 2020 Half Year Conference - Company proprietary information of Givaudan 58
How to win Digital 59
Digitalised value chain End-to-end digitalisation of our value chain Marketing / Sales Product Development Operations Consumer Customer Smart Creation Innovation Sourcing Production Supply Understanding Interaction & Selection Value chain 2020 Half Year Conference - Company proprietary information of Givaudan 60
How to win People 61
Our People Engagement Continue to foster a culture that develops, supports and motivates our people Diversity Implement plans to deliver on our diversity commitments Skills Build stronger leadership and expertise of our people 2020 Half Year Conference - Company proprietary information of Givaudan 62
Taste & Wellbeing Our new Division name 63
Our new Division name Taste & Wellbeing Our ambition is to shape the future of food by becoming the co-creation partner of choice to our customers Built on our global leadership position in flavour and taste, we go beyond to create food experiences that do good and feel good , for body, mind and planet 2020 Half Year Conference - Company proprietary information of Givaudan 64
Maurizio Volpi President Fragrance Division 65
Strategy 2025 Fragrance Division
Strategy 2025 Fragrance market overview CP Consumer Products FF 14.8 bn CHF Fine Fragrances Market Potential as of 2019 FIB Fragrance Ingredient Business AB Market potential as of 2019 Givaudan market share as of 2019 Active Beauty 2020 Half Year Conference - Company proprietary information of Givaudan Source: Based on Givaudan internal estimates 67
Strategy 2025 Fragrance market trends Consumer base is Living longer and more Sustainability is of COVID-19: growing consciously high concern E-commerce, self-care and localisation gain importance Trend Impact Urbanisation in high New demographics, Biodegradable, • Retail channels • • • growth markets e.g. Silver renewable, natural upheaval Aspiration for generation ingredients • Digital enablement • hygiene and beauty • Local and regional brands 2020 Half Year Conference - Company proprietary information of Givaudan 68
Strategy 2025 Our ambition We create for happier, healthier lives with love for nature Let’s imagine together… By reinforcing our leadership in fragrances we want to become the creative partner of choice not only in personal, fabric, hygiene and home care but also in Fine Fragrance and beauty overall 2020 Half Year Conference - Company proprietary information of Givaudan 69
Strategy 2025 Strategic pillars to drive growth in Fragrances Our Ambition By reinforcing our leadership in fragrances we want to become the creative partner of choice not only in personal, fabric, hygiene and home care but also in Fine Fragrance and beauty overall Our strategic pillars Where to play How to win Growing with all New and High growth Leverage Purpose driven Operations Leverage People customer superior markets M&As innovation and Digital segments product offering sourcing 2020 Half Year Conference - Company proprietary information of Givaudan 70
Strategy 2025 Performance ambition – sales growth CHF 650m to CHF 800m additional sales by 2025 4-5% CAGR% New and superior Growing with all High growth product offering customer segments markets 2020 Half Year Conference - Company proprietary information of Givaudan 71
Where to play New and superior product offering 72
New and superior product offering Biotechnology Beauty Leverage our capabilities Further expand our and acquisitions for our offering in Active Beauty ingredients Naturals Delivery Systems Provide our customers with Provide the next the most innovative and generation of bio-caps qualitative ingredients 2020 Half Year Conference - Company proprietary information of Givaudan 73
Where to play Growing with all customer segments 74
Growing with all customers segments Global Consumer Enriched Innovations Packaged Goods portfolio Large Local & Regionals Long tail of Local & Regionals Leveraging M&A with Givaudan capabilities 2020 Half Year Conference - Company proprietary information of Givaudan 75
Growing with all customers across all categories Deos, bath, Fabric & Estimated retail shower, hair Fragrances Skin care Make-up value home care (bn CHF) & oral care (Source Euromonitor) 160 200 50 140 70 2020 Half Year Conference - Company proprietary information of Givaudan 76
Where to play High growth markets 77
High growth markets Our key focus countries and regions to capture growth Latin America China Focus on leveraging our Leverage the drom latest investments in the HGM ca 1.5 x CAGR acquisition region and capture the growing customers base Vs mature markets Middle East & Africa South-East Asia Keep investing in key Accelerate SEA growth by countries leveraging acquisitions of Fragrance Oils / India Expressions Parfumées Keep investing to sustain current growth rate 2020 Half Year Conference - Company proprietary information of Givaudan 78
Where to play Leverage M&A 79
Leverage our acquisitions Outstanding portfolio aligned with market trends Naturals Local and regional customers Albert Vieille Naturex Expressions Parfumées Indena drom Fragrance Oils Ungerer Aligned with market trends and our strategic Active priorities Beauty Soliance Induchem Naturex Centroflora AMSilk Ingredients Indena Alderys Ungerer 2020 Half Year Conference - Company proprietary information of Givaudan 80
How to win Purpose driven innovation and sourcing 81
Purpose driven innovation and sourcing Sustainability meeting current and future needs 01 03 Science Sourcing Biotechnology Responsible sourcing Bio-based capsules Best in class for FiveCarbon Path™ Sustainability and Traceability 02 Creation Naturality index Naturals innovation Artificial intelligence VivaScentz™: design for Health & Wellbeing 2020 Half Year Conference - Company proprietary information of Givaudan 82
How to win Operations 83
Operations Industry leader in automation Next Generation Factories Best in class business Best palette & continuity plan vertical integration Operations Risk Ingredients Advantage Management 2020 Half Year Conference - Company proprietary information of Givaudan 84
How to win Leverage digital 85
Leverage digital Expanding our digital capabilities Digital Rewire Digital for Digital for better innovation speed and products & for new areas efficiency services 2020 Half Year Conference - Company proprietary information of Givaudan 86
How to win People 87
People Fragrance Division key specific initiatives Achieve our targets for diversity in high growth markets and gender Skills Engagement Diversity Acquire and develop Continue to foster the skills needed to a culture that achieve our ambitions develops, supports and motivates its people 2020 Half Year Conference - Company proprietary information of Givaudan 88
Fragrance & Beauty Our new Division name 89
Our new Division name Fragrance & Beauty Our ambition : By reinforcing our leadership in fragrances we want to become the creative partner of choice not only in personal, fabric, hygiene and home care but also in Fine Fragrance and beauty overall 2020 Half Year Conference - Company proprietary information of Givaudan 90
Tom Hallam Chief Financial Officer 91
Value creation history at Givaudan A strong track record of growth & value creation
Value creation at Givaudan The journey of growth The post Quest era The 1 st Five Year Cycle The 2 nd Five Year Cycle 2007-2010 2011-2015 2016-2019 159 949 39 1,017 876 994 348 1,146 5 y CAGR 4 y CAGR 4.3 % 5.3 % 532 6,203 4 y CAGR 4,396 4,396 4,239 4,239 4.3 % 2,909 As at 1st Jan LFL Acquisitions Currency As at 31st As at 1st Jan LFL Acquisitions Currency As at 31st As at 1st Jan LFL Acquisitions Currency As at 31st 2016 Dec 2019 2007 Dec 2010 2011 Dec 2015 (Sales in MCHF) >CHF 3.3 billion LFL* CAGR 4.9% of incremental revenues since Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) (2007-2019) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months 2007 from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period 2020 Half Year Conference - Company proprietary information of Givaudan 93
Value creation at Givaudan Industry leading financial performance Sales growth Free Cash Flow as % of sales 13.2% 9.2% 12.7% 12.7% 11.8% 8.0% 12.8% 9.7% 6.3% 5.8% 5.6% 9.2% 4.9% 8.0% 4.2% 4.7% 5.0% 6.0% 4.0% 5.1% 6.0% 4.6% 3.0% 3.0% 2016 2017 2018 2019 2016 2017 2018 2019 Givaudan Symrise IFF Givaudan Symrise IFF 2020 Half Year Conference - Company proprietary information of Givaudan 94
Value creation at Givaudan Sustained value creation for shareholders 70 Share price evolution vs SMI Dividend per share in CHF 60 1000% 50 800% 40 600% 30 400% 20 200% 10 0% 0 2000 2005 2010 2015 2020 2000 2005 2010 2015 Givaudan SMI Average annual yield of >CHF 35 billion 13.3% of total shareholder return since the IPO vs 4.1% of SMI 2020 Half Year Conference - Company proprietary information of Givaudan 95
Strategy 2025 Performance ambitions 96
Strategy 2025 Performance ambitions Sales growth Free cash flow Purpose ambitions Purpose 4.0 – 5.0% >12% of sales linked targets 2021 – 2025 2021 – 2025 2021 – 2025 Average Like for Like* Sales Growth Average FCF** as % of sales Progress towards all published purpose targets *Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period **Free Cash Flow (FCF) refers to operating cash flow after net investments, interest paid and lease payments 2020 Half Year Conference - Company proprietary information of Givaudan 97
Strategy 2025 Performance ambitions – organic sales growth 2016 – 2020 Guidance 2016 – 2019 4.0 – 5.0% 5.1% Average Like for Like* Sales Growth Average Like for Like* Sales Growth 2021 – 2025 Guidance 4.0 – 5.0% Average Like for Like* Sales Growth 2020 Half Year Conference - Company proprietary information of Givaudan 98
Strategy 2025 Performance ambitions – Free Cash Flow 2016 – 2020 Guidance 2016 – 2019 12 – 17% 12.5% Average FCF** as % of sales Average FCF** as % of sales We are fully on course to deliver the set target range 2021 – 2025 Guidance >12% of sales Average FCF** as % of sales 2020 Half Year Conference - Company proprietary information of Givaudan 99
Strategy 2025 Performance ambitions - Purpose linked targets Nature People Before 2030 Before 2025 Our operations’ carbon Everyone on our sites will have emissions will be cut by 70% and our supply chain emissions access to mental and physical Communities by 20% health initiatives, tools and Creations training Before 2030 By 2030 By 2030 We will replace single-use Before 2025 We will source all materials and plastics with eco-friendly services in a way that protects We will double our business We will reduce our total alternatives across our sites and people and the environment through creations that recordable injuries cases by operations contribute to happier, healthier 50% lives. Before 2040 By 2030 Before 2030 Our operations’ will be climate We will improve the lives of positive and our supply chain 50% of our senior leaders will millions of people in emissions will be cut by 50% be from high growth markets communities where we source Before 2050 Before 2030 and operate Our supply chain will be climate 50% of our senior leadership positive will be women 2020 Half Year Conference - Company proprietary information of Givaudan 100
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