2021 Integrated Annual Report Highlights

IN A NUTSHELL20212021 In a Nutshell WHO WE ARECommitted to Growth, with PurposeWith game-changing innovations in food and beverage and inspirational creations in the world of scent and beauty, we lead the global industry in flavour & taste, functional & nutritional ingredients, and fragrance & beauty.We are committed to driving purpose-led, long-term growth by increasing our positive impact on nature and improving people’s health and happiness. It’s a commitment to create shared value for the business, society and nature. 185locations in52 countriesworldwideOver16,800employeesProposeddividendper share CHF 6669Creations and research centres worldwide CHF 562 mR&D spendTA STE & WELLBEINGGoing beyond great taste to create food experiences that do good and feel good, for body, mind and planet.FRAGRANCE & BEAUTYBringing you inspiring creations in the world of scent and beauty through craftsmanship, creativity and passion. Our two principal business activities 1Givaudan – 2021 In a NutshellWho we are 1 26% 1.4% –22%SOCIAL1. EBITDA defined as Earnings before interest (and other financial income (expense), net), Tax, Depreciation and Amortisation, corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.2. 2021 dividend subject to shareholder approval at the AGM on 24 March 2022.3. 2020 figures restated to include acquisitions.4. On sites facing water stress, baseline year 2020. For municipal and groundwater (m³) per tonne of production.5. Tonnes of incinerated and landfill waste per tonne of production compared to 2015.6. Excludes all acquisitions except Activ International in 2020 and in 2021 Activ International & drom integrated entities7. The 2021 increase is due to the inclusion of acquisitions.Note: Like-for-like excludes the impact of currency, acquisitions and disposals.Women in senior managementAverage base salary difference between men & women¹ Reduction of recordable injury rate since 20181. Results for the Givaudan Group globally, for equivalent roles and skill sets.Our impact in 2021Creating growth for our business, society and the planet.Sustainable performance reviewFor the year ended 31 December, in millions of Swiss francs, except for environment and social data20212020Percentage changeEconomicGroup sales6,684 6,322 5.7%Like-for-like sales growth7. 1 %4.0%Gross profit 2,855 2,659 7. 4 %as % of sales42.7%42.1%EBITDA ¹ 1,482 1,397 6.0%as % of sales22.2%22.1%R&D spend 562 536 4.7%as % of sales8.4%8.5%Operating income 1,089 996 9.3%as % of sales16.3%15.8%Net income 821 743 10.5%as % of sales12.3%11.8%Operating cash flow 1,288 1,189 8.3%as % of sales19.3%18.8%Free cash flow 843 811 3.9%as % of sales12.6%12.8%Total assets 11,420 10,658 7. 1 %Net debt4,3944,040 8.8%Leverage ratio51%50%Share price as of last trading day of December (CHF)4,7923,73028.5%Cash dividend ² (CHF)66643.1%Earnings per share − basic (CHF) 89.03 80.59 10.5%EnvironmentalAbsolute GHG Emissions scope 1 + 2 ³(31%)(24%)Absolute GHG Emissions scope 3 ³(4%)(2%)Renewable electricity (RE 100 compliant) ³84%65%Water efficiency ⁴(4%)N/AWaste efficiency ⁵(2%)(10%)SocialNumber of employees as at 31 December (FTE) 16,842 15,852 6.2%Women in total work force ⁶39%39%Women in senior management26%25%Turnover rate10%9%Lost time injury rate ⁷ 0.34 0.25 36.0%Givaudan – 2021 In a Nutshell2 Our impact in 2021 ECONOMICENVIRONMENT7.1% 6,684 12.6%–31% –4% 84%Sales growth LFL²CHF million salesFree cash flow as % of sales GHG emissions scope 1 + 2 ³GHG emissions scope 3 ³Renewable electricity2. Like-for-like excludes the impact of currency, acquisitions and disposals.Our solid track-record of ESG ratingsDouble ‘A rating’ for climate and water for three consecutive yearsCDP leader board recognition for supplier engagement (2021 score published end of Feb. 2022)Awarded the EcoVadis Gold medal, ranking us in the top 5% of more than 75,000 businessesRanked in the top 2% in the FTSE4Good Index Series, among our peersFTSE4Good Index SeriesIncluded in SXI Swiss Sustainability 25 IndexRated as ‘low-risk’ in 2021 with a score of 19.1 and a chemicals industry ranking 13 out of 480Since 2017 Givaudan has been rated AAA by MSCI ESG RATINGS3. Compared to baseline year 2015.Givaudan – 2021 In a NutshellOur impact in 2021 3 Highlights 2021Engaging with others to accelerate sustainable change• We’ve joined WBCSD to launch Vision 2050: Time to Transform, which provides ambitious guidance to the business community on how to accelerate change. It offers an opportunity to unlock the incredible potential of a green economy, as businesses grow with their customers and act as a force for good.• And we’ve joined Together for Sustainability, a global sector supply chain initiative to assess, audit and improve supply chain sustainability practices.Throughout the year our activities helped expand our capabilities and move closer to our customers. Whether it be innovations, i