2017 Annual Report Highlights

2017 HighlightsPartnering for shared successNEU_180227_GIV_Highlights 2017_EN.indd 327.02.2018 17:10:09 wGivaudan – 2017 Highlights2017 HighlightsPartnering for shared successTrue partnerships with our key stakeholder groups are crucial in creating shared success and a sustainable future. In nurturing these partnerships and as part of our 2020 strategy, we are determined to continue our industry-leading investment in innovation by increasing our network of strategic partners and expanding our natural, sensorial and cosmetic capabilities. We invest significantly in our talent and foster a great place to work. Furthermore, we enhance our responsible sourcing in collaboration with our suppliers and embrace our responsibility to minimise our impact on the environment while strengthening the social and economic fabric of the communities in which we operate.Table of contents: 2017 in numbers1Givaudan at a glance2Chairman’s introduction4Chief Executive Officer’s review6Our value chain10Our capabilities11Our business model12Our 2020 strategy14Financial highlights26Corporate Governance and Compensation highlights34Overview of annual publications41NEU_180227_GIV_Highlights 2017_EN.indd 427.02.2018 17:10:09 Givaudan – 2017 Highlights 12017 in numbersStrong financial performanceSales of CHF 5.1 billionup 4.9% on a like-for-like basis1 EBITDA of CHF 1,089 millionEBITDA margin of 21.6 %Net income of CHF 720 millionup 11.7% year-on-yearFree cash flow of 11.8 % of salesProposed dividend2 of CHF 58.0 0 per share, an increase of 3.6% year-on-yearGroup sales and growth rateEBITDA and marginDividend per share in Swiss francs1. Like-for-like excludes the impact of currency, acquisitions and disposals.2. Subject to shareholder approval at the AGM on 22 March 2018.Free cash flow4,3694,4044,3964,6635,051% growth LFL1Group sales in millions of Swiss francs201320142015201620174.94.22.73.75.59701,0531,0701,1261,089EBITDA margin in %EBITDA in millions of Swiss francs2013201420152016201721.624.124.323.922.24750545658220132014201520162017662604720597594% of salesFree cash flow in millions of Swiss francs2013201420152016201712.811.816.413.715.2NEU_180227_GIV_Highlights 2017_EN.indd 127.02.2018 17:10:16 Givaudan – 2017 Highlights2 Sales in North AmericaCHF 1,352 millionProduction sites9Employees 2,23146Production sites109 Locations worldwide11,170 Full time employees424 millionR&D spendGivaudan at a glance Our business in 2017Flavour 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 across key segments including beverages, sweet goods, savoury, snacks and dairy. We explore the globe for ingredients, innovate to bring our customers unique propositions, and delight millions of consumers around the world. www.givaudan.com – our company – about GivaudanAnnual sales in mature markets57 %Sales in Latin AmericaCHF 618 million Production sites6 Employees 1,471Total 54%of GroupsalesBeveragesSoft drinksFruit juicesInstant beverages%SavouryReady-made mealsSnacksSoups and saucesMeat and poultrySweet goodsConfectioneryBaked goodsSugar confectioneryChocolateChewing gum%DairyIce cream and yoghurtDessertsYellow fats (margarines)%%BundNEU_180227_GIV_Highlights 2017_EN.indd 227.02.2018 17:10:17 Givaudan – 2017 Highlights 3Sales in Europe, Africa and Middle EastCHF 1,723 millionProduction sites18Employees 4,819Fragrance DivisionWe live to perfume lifeThe artistry of our perfumers encompasses a myriad of scented stories for brands everywhere. Our customers – global, international, regional and local – serve end-consumer markets with fragrances for personal, home and laundry care brands as well as prestige perfumes, which bring pleasure to millions daily. And for nature-derived beauty performance, our Active Beauty offers an extensive portfolio of award-winning active cosmetic ingredients designed by teams that harness the power of nature for cutting-edge cosmetics. Annual sales in high growthmarkets43 %Sales in Asia PacificCHF 1,358 millionProduction sites13Employees 2,649‘A Sense of Tomorrow’A new sustainability approachCDP score ALeadership level 19.2 millionHours worked safely GHG emissionsScience-based targets for 2030%Fine FragrancesSignature fragrancesLine extensions%Consumer ProductsFabric and personal careHair and skin careHousehold and air careOral care%Fragrance Ingredients and Active BeautyTotal 46%of GroupsalesBundNEU_180227_GIV_Highlights 2017_EN.indd 327.02.2018 17:10:17 Givaudan – 2017 Highlights4 Chairman’s introductionCreating value with our partnersGivaudan finished a successful second year of its 2020 strategy with strong business momentum. In 2017 we delivered solid topline growth and free cash flow generation, in line with our projected avera