Givaudan SA (OTCPK:GVDBF) Q2 2021 Earnings Conference Call July 22, 2021 9:00 AM ET Â Company Participants | --- | --- | |-------------------------------------------------------------------------------|-------| | | | | Gilles Andrier – Chief Executive Officer Tom Hallam – Chief Financial Officer | | | Conference Call Participants | | | Celine Pannuti – JPMorgan | | | Jean-Philippe Bertschy – Vontobel | | Gilles Andrier Ladies and gentlemen, welcome to our 2021 Half Year Results Conference Call. IÂ'll make t ...

2021 Half year results Strong financial performance Givaudan engage your senses Gilles Andrier Chief Executive Officer Sales performance 2021 Half year results Performance highlights • Sales of CHF 3,373 million, up 7.9% on a like-for-like* basis and 4.7% in Swiss francs • Excellent sales across all markets and segments, with strong contribution from 2025 strategic growth areas • Strong performance of high growth markets with a like-for-like growth of 10.4% • Underlying EBITDA margin of 24.2%, compared to 2 ...

2020 Full Year Results | --- | --- | --- | --- | --- | --- | --- | --- | |------------------------------------|-------|-------|-------|-------|-------|-------|-------| | Excellent Financial Performance | | | | | | | | | 2020 Strategy delivered 29/01/2021 | | | | | | | | | | | | | | | | | Gilles Andrier Chief Executive Officer 2020 Full year results Performance highlights • Sales of CHF 6.3 billion, up 4.0% on a like-for-like* basis and 1.9% in Swiss francs • EBITDA of CHF 1,397 million, an increase of 9.6%; ...

Financial Data and Key Metrics Changes - In 2020, Givaudan achieved sales of over CHF6.3 billion, representing a growth of 4% on a like-for-like basis and 1.9% in Swiss francs [10][12] - EBITDA increased by 9.6% to CHF1.4 billion, with a comparable EBITDA margin of 22.8%, up 130 basis points from 2019 [12][43] - Free cash flow reached CHF811 million, up 3% from 2019, representing 12.8% of sales [12][43] - The net income was CHF743 million, a solid increase of 5.8% compared to the previous year [52][43] Business Line Data and Key Metrics Changes - The Fragrance and Beauty division reached over CHF2.9 billion, growing 5.4% on a like-for-like basis, while the Taste & Wellbeing division reached CHF3.4 billion, growing 2.8% [14][32] - Fine Fragrance sales decreased by 6% on a like-for-like basis, but showed strong recovery in the second half of the year [30][18] - The resilient part of Givaudan, which includes Consumer Products and Active Beauty, grew at 8.2% on a like-for-like basis [20][11] Market Data and Key Metrics Changes - High growth markets, representing 42% of sales, delivered a growth of 7.4%, with strong performance in Latin America, particularly Brazil and Argentina [23][26] - North America grew by 5.7%, while EMEA grew by 1.1%, driven by high growth markets in Eastern Europe, Africa, and the Middle East [28][25] - Sales in Asia Pacific were mixed, with China achieving double-digit growth, while India and Indonesia faced declines [27][35] Company Strategy and Development Direction - Givaudan completed its five-year strategic cycle in 2020 and is now committed to a new set of ambitious targets for the 2021-2025 cycle [8][72] - The company aims to achieve organic sales growth of 4% to 5% on a like-for-like basis and maintain free cash flow of at least 12% over the next five years [77][72] - Givaudan's strategy focuses on expanding its portfolio, extending customer reach, and enhancing market strategy, supported by innovation and sustainability initiatives [75][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and market leadership despite the challenges posed by the COVID-19 pandemic [8][72] - The outlook for 2021 remains cautious due to ongoing pandemic-related uncertainties, but the company is focused on supporting customers and maintaining operational efficiency [72][73] - Raw material prices are expected to increase moderately by about 1% throughout the year, with a continued focus on cost discipline [73][104] Other Important Information - Givaudan proposed a dividend of CHF64 per share, an increase of 3.2% year-on-year [13][57] - The company has established a community fund to support local communities affected by the pandemic [40] Q&A Session Summary Question: Insights on Fine Fragrances and market performance in Latin America and Southeast Asia - Management noted that the 6% decline in Fine Fragrances was a good result, attributed to market share gains and diverse client exposure [82][84] - Confidence in Latin America remains strong, while recovery in Southeast Asia, particularly India and Indonesia, is expected once the pandemic situation improves [90][92] Question: Expectations for free cash flow and partnership with Novozymes - Free cash flow conversion is expected to remain stable, with capital expenditures anticipated to be similar to 2020 levels [95][99] - The partnership with Novozymes aims to enhance offerings in the home care category, with financial impacts still to be determined [101][102] Question: Sustainability and R&D priorities - Sustainability is increasingly influencing market share gains, with a focus on renewable ingredients and biotechnology in R&D [111][113] Question: Margin outlook and cost normalization - Overall costs are expected to be neutral in 2021, with some increases in freight costs offsetting savings from reduced travel [119][120] - The rate of innovation remains strong, with clients actively developing new products despite some delays due to COVID-19 [122][123] Question: Organic sales growth makeup in 2021 - Approximately 80% of organic sales growth in 2020 came from volume, with expectations for some pricing to return in 2021 due to raw material inflation [130][131]

Givaudan SA (OTCPK:GVDBF) Q2 2020 Earnings Conference Call July 21, 2020 9:00 AM ET Company Participants Gilles Andrier - Chief Executive Officer Tom Hallam - Chief Financial Officer Conference Call Participants Celine Pannuti - JPM Heidi Vesterinen - Exane Paribas Patrick Rafaisz - UBS Tom Wrigglesworth - Citi Matthew Yates - Bank of America Gunther Zechmann - Bernstein Katy Hutchinson - Davy Operator Ladies and gentlemen, welcome to the Givaudan 2020 Half Year Results Conference Call and Live Webcast. I'm ...

2020 Half year results Strong Financial Performance - 2020 guidance confirmed Givaudan engage your senses Gilles Andrier Chief Executive Officer 2020 Half year conference call for investors and analysts 2 2020 Half year results Performance highlights • Sales of CHF 3,221 million, up 4.0% on a like-for-like* basis and 4.1% in Swiss francs • Excellent performance of those parts of portfolio which are not impacted by COVID-19 • Strategic focus areas, acquired businesses and high growth markets strongly contrib ...