2016 Annual Report

Givaudan – 2016 Annual Report2016 Annual Report2016 Annual ReportGrowing with our customers Givaudan – 2016 Annual ReportPerformance highlights ~25%Market share39Production sites98Locations worldwide1 7. 9 M hours worked safely10,476 EmployeesPerformance highlightsIn line with our 2020 guidanceSales of CHF 4.7billionup 4.2% on a LFL1 basisEBITDA of CHF 1,126 millionup 5.2% in Swiss francsEBITDA margin of 24.1% Net income of CHF 644 millionup 3.1% year-on-yearFree cash flow of 12.8% of salesProposed dividend2 of CHF 56.0 0 per share, an increase of 3.7% year-on-year4,2574,3694,4044,3964,663% growth LFL1Group sales in millions of Swiss francs201220132014201520164.22.73.75.56.6Group sales and growth rate8899701,0531,0701,12620122013201420152016EBITDA margin in %EBITDA in millions of Swiss francs24.124.323.922.220.4EBITDA and margin3647505456220122013201420152016Dividend per share in Swiss francs1. LFL: Like-for-Like, excludes the impact of currency, acquisitions and disposals.2. Subject to shareholder approval at the AGM meeting on 23 March 2017.512662604720597% of salesFree cash flow in millions of Swiss francs2012201320142015201616.412.813.715.212.0Free cash flow Givaudan – 2016 Annual ReportKey figuresKey figuresSolid financial performanceOur 2016 full year results are a convincing demonstration of the continued value we bring to our customers, across all regions and segments.For the year ended 31 December, in millions of Swiss francs, except for capital markets and employee data20162015 2Percentage changeSales and resultsGroup Sales4,663 4,396 6.1%Flavour sales 2,433 2,300 5.8%Fragrance sales 2,230 2,096 6.4%Like-for-like sales growth4.2%2.7%Gross profit 2,128 2,030 4.8%as % of sales45.6%46.2%EBITDA 1 1,126 1,070 5.2%as % of sales24.1%24.3%Operating income 875 794 10.2%as % of sales18.8%18.1%Income attributable to equity holders of the parent 644 625 3.1%as % of sales13.8%14.2%Balance sheet and cash flowsOperating cash flow 805 915 (12.0%)as % of sales1 7. 3 %20.8%Free cash flow 597 720 ( 1 7. 1 %)as % of sales12.8%16.4%Net debt9306773 7. 4 %Leverage ratio19%15%Capital MarketsMarket capitalisation1 7, 2 3 016,8332.4%Share price as at 31 December1,8661,8232.4%Cash dividend 356543.7%Earnings per share − basic (CHF) 69.95 6 7. 8 9 3.0%EmployeesNumber of Employees as at 31 December 10,476 9,907 5.7%Lost time injury rate 0.36 0.42 (14.3%)1. EBITDA: Earnings Before Interest (and other financial income (expense), net), Tax, Depreciation and Amortisation. This corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.2. Previous year figures have been restated in accordance with early adoption of IFRS 9 (see Note 2).3. Subject to shareholder approval at the AGM meeting on 23 March 2017. Givaudan – 2016 Annual ReportOur business18%Fine FragrancesSignature fragrancesLine extensions69%Consumer ProductsFabric and personal careHair and skin careHousehold and air careOral care13%Fragrance Ingredients and Active BeautyTotal 48%of GroupsalesTotal 52%of GroupsalesBeveragesSoft drinksFruit juicesInstant beverages36%SavouryReady-made mealsSnacksSoups and saucesMeat and poultryConfectioneryConfectioneryBaked goodsSugar confectioneryChocolateChewing gum14%DairyIce cream and yoghurtDessertsYellow fats (margarines)15%35%Our business An invitation to engage your sensesOur divisionsFlavour DivisionWe make life taste deliciousBringing moments of delight with delicious flavour and taste experiences, we are dedicated to expanding the world’s expression through flavours. We explore the globe for ingredients, innovate to bring our customers unique propositions, and delight millions of consumers around the world.Our marketsServing customers’ and consumers’ growing demandMature markets: 55% of annual sales High growth markets: 45% of salesSales in high growth markets are driven by the rising consumer demand from an increasing urban middle class. In both high growth and mature markets, increasing demand for health and well-being products, such as lower salt, sugar and fat in food, and anti-ageing effects in cosmetics offer a significant potential for growth. Through targeted investment, we focus our efforts on best serving our customers and maximising our growth opportunities.Our consumersWe bring the realm of taste and scent to lifeGivaudan impacts the lives of millions of consumers around the world with the flavour and fragrances we create hand in hand with our customers. We unveil the tastes and scents that suit you best, and that you love most. We bring them to you every day, everywhere and in every way.Our customersSuperior customer experienceWorking hand in hand with our customers, our tastes and scents inspire the creation of products that delight consumers the world over. 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. Active Beauty o