2019 Integrated Annual Report

2019Integrated Annual ReportCreating and sharing value – Story 1Driving digital innovation in FragrancesCreating and sharing value – Story 2Raising our ambitions to become climate positiveCreating and sharing value – Story 3The future of protein 2019 Integrated Annual Report Performance highlightsGivaudan – 2019 Integrated Annual Report4,3964,6635,0515,5276,203% growth LFLGroup sales in millions of Swiss francs201520162017201820195.84.95.64.22.7720597594703787% of salesFree cash flow in millions of Swiss francs2015201620172018201911.812.712.712.816.4SUPPLIERENGAGEMENTLEADER2019EBITDA in CHF million1,275EBITDA as a % of sales20.6%Absolute scope 1 + 2 GHG emissions ¹– 17%Employees14,9 69Performance highlightsCreating responsible growthGroup salesFree cash flowClimate Change Givaudan has received CDP's highest 'A score' for its leadership in climate action. We were recognised for our actions to cut emissions, mitigate climate risks and develop the low-carbon economy.Supplier engagement We earned a place on the CDP Supplier Engagement leader board in recognition of our actions and strategies to reduce emissions and lower climate-related risk across our supply chain.EcoVadis GoldGivaudan has ranked in the top 1% of the 55,000 companies participating in the 2019 EcoVadis Corporate Social Responsibility (CSR) assessment with a score of 72/100. This result earned Givaudan a gold rating for the sixth year in a row.Net income in CHF million702Proposed dividend per share in CHF62.00Renewable electricity75%Lost time injury rate ²– 79%1. Since 2015, as at 30 September 2019. 2. Since 2009.3. Like-for-like excludes the impact of currency, acquisitions and disposals.Growth LFL ³+ 5.8%CHF 6,203 millionCHF 787 millionAs a % of sales 1 2.7% Total of group sales 55Beverages38SavourySweet goods13Dairy1732Fine Fragrances68Consumer ProductsFragrance Ingredientsand Active Beauty1319Total ofgroup sales 45Total of group sales 55Beverages38SavourySweet goods13Dairy1732Fine Fragrances68Consumer ProductsFragrance Ingredientsand Active Beauty1319Total ofgroup sales 45Fragrance DivisionWe live to perfume lifeThe artistry of our perfumers encompasses a myriad of scented stories for brands everywhere. Our customers serve the consumer markets with fragrances for body, household and laundry brands, as well as prestige fragrances, creating unforgettable fragrances. And for nature-derived beauty performance, our Active Beauty business offers a comprehensive portfolio of award-winning cosmetic ingredients that incorporate the power of nature.Performance highlightsCreating responsible growthFlavour DivisionWe make life taste deliciousWe are dedicated to expanding the world’s expression through flavours by bringing moments of delight with delicious flavour and taste experiences. Our customers – global, international, regional and local – are in the food and beverage industry and span key segments including beverages, sweet goods, dairy and savoury. We explore the globe for ingredients, innovate to bring our customers unique propositions, and delight millions of consumers around the world. SalesSalesSIX Switzerland Sustainability 25 Index®We have been ranked in the list of the top 25 sustainable companies in the 2019 SIX Switzerland Sustainability 25 Index®, reflecting our strong commitment to sustainability, best exemplified by our ‘A Sense of Tomorrow’ approach.Best-performing CEOsOur CEO Gilles Andrier ranked number 30 on the prestigious Harvard Business Review’s (HBR) annual ranking of 100 best-performing CEOs in the world. The ranking is based both on financial performance and environmental, social and governance (ESG) ratings. 2019 Key figuresGivaudan – 2019 Integrated Annual ReportKey figuresfully on track to deliver 2020 guidance Sustainable performance reviewFor the year ended 31 December, in millions of Swiss francs, except for environment and social data20192018Percentage changeEconomicGroup sales6,203 5,527 12.2%Like-for-like sales growth5.8%5.6%Gross profit 2,530 2,329 8.7%as % of sales40.8%42.1%EBITDA ¹ 1,275 1,145 11.4%as % of sales20.6%20.7%Operating income 920 883 4.2%as % of sales14.8%16.0%Income ² 702 663 6.0%as % of sales11.3%12.0%Operating cash flow 1,136 916 24.0%as % of sales18.3%16.6%Free cash flow 787 703 11.9%as % of sales12.7%12.7%Total assets 10,396 9,277 12.1%Net debt3,6792,84729.2%Leverage ratio47%41%Share price as of last trading day of December (CHF)3,0312,27633.2%Cash dividend ³ (CHF)62603.3%Earnings per share − basic (CHF) 76.17 71.92 5.9%EnvironmentalGHG emissions scope 1 + 2 ⁴( 1 7. 0 %)(13.9%)22.3%Renewable electricity75.0%69.4%8.1%SocialNumber of employees as at 31 December (FTE) 14,969 13,598 10.1%Women in total work force38.5%38.2%0.9%Women in senior management26.0%24.0%8.3%Lost time injury rate 0.22 0.25 (12.0%)Turnover rate10.0%12.0%(16.7%)Main direct suppliers assessed via SEDEX80.0%78.0%2.6%1. EBITDA defined as Earnings before interest