Annual Report 2012 Annual Report 2012 Introduction and Contents
Total Page：16
File Type：pdf, Size：1020Kb
Annual Report 2012 Annual Report 2012 Introduction and contents As the leading company in the fragrance and flavour industry, Givaudan develops unique and innovative fragrance and flavour creations for its customers around the world. We have a market share of approximately 25%, and this industry leadership position is underpinned by a sales and marketing presence in all major markets. We create fragrances for personal and home care brands that range from prestige perfumes to laundry care, and in flavours our expertise spans beverages, savoury, snacks, sweet goods and dairy products. Overview Performance Governance Financial highlights 02 Business performance 34 – Group structure and shareholders 60 Distinct capabilities 03 Fragrance Division 36 – Capital structure 61 – Board of Directors 62 Key events 04 – Fine Fragrances 38 – Executive Committee 72 Our business 06 – Consumer Products 39 – Compensation, shareholdings and loans 75 – Fragrance Ingredients 39 Chairman’s letter 08 – Shareholders’ participation 75 Flavour Division 40 Chief Executive’s review 10 – Change of control and defence measures 76 – Asia Pacific 41 – Auditors 77 – Europe, Africa and Middle East (EAME) 42 – Information policy 77 Strategy – North America 42 Compensation report 78 Developing markets 16 – Latin America 43 Research and Development 18 Financial Report Health and Wellness 26 Sustainable Sustainable sourcing of 28 Business Model Financial review 89 raw materials – Compliance 46 Consolidated financial statements 92 Targeted customers and segments 30 – Shareholders 47 Notes to the consolidated 97 – Customers 48 financial statements – Our people 49 Report of the statutory auditors 149 – Procurement 51 on the consolidated financial statements – Supply chain 52 – Information technology 53 Statutory financial statements 150 of Givaudan SA – Environment, Health and Safety (EHS) 54 Notes to the statutory 152 – Risk management 55 financial statements – Regulatory 56 Appropriation of available 156 earnings of Givaudan SA Report of the statutory auditors 157 on the financial statements Overview Engaging the senses through a culture of creativity and innovation Overview Strategy Performance Sustainable model Sustainable Across the business, our people have a nose for new ideas and an appetite Governance for invention. In more than 40 countries, we rely on their passion, knowledge and curiosity. Seeking out fresh ways to engage the senses, our perfumers and flavourists constantly search for the next creative breakthrough. Our hunt takes us to far-flung corners of the world, to the depth of our imagination and to laboratories on our own doorstep. We track down ReportFinancial natural ingredients from distant continents, we take off in novel directions and we discover new techniques and processes within the fertile minds of our in-house scientists. In these diverse ways, listening to consumers, talking to clients and tapping into knowledge gained throughout our 200-year history, we reinforce our position as the world’s leading fragrance and flavour company. We can rely on our ever-evolving culture of creativity and innovation. Givaudan SA – 01 Annual Report 2012 Overview Financial highlights CHF4.3 billion 44% of sales CHF870 million Sales up 6.6% in local currencies in developing markets EBITDA 20.4 % CHF411million CHF512 million EBITDA margin Net income, 9.7% of sales Free cash flow CHF6.4 billion CHF2.7billion CHF3.7billion Total assets Total liabilities Total equity Key figures In millions of Swiss francs, except per share and employee data 2012 2011 Group sales 4,257 3,915 Fragrance sales 2,021 1,833 Flavour sales 2,236 2,082 Gross profit 1,798 1,666 as % of sales 42.2% 42.6% EBITDA1 870 758 as % of sales 20.4% 19.4% Operating income 607 443 as % of sales 14.3% 11.3% Income attributable to equity holders of the parent 411 252 as % of sales 9.7% 6.4% Earnings per share – basic (CHF) 45.15 27.71 Earnings per share – diluted (CHF) 44.85 27.55 Operating cash flow 781 456 as % of sales 18.3% 11.6% Free cash flow 512 117 as % of sales 12.0% 3.0% Number of employees 9,124 8,913 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. 02 – Givaudan SA Annual Report 2012 Overview Distinct capabilities In serving customers, we take pride in our distinct capabilities Overview in creation, innovation and operational excellence. Creation The heart of our business Strategy Passionate perfumers and flavourists Unique product palettes and ingredients Customer intimacy and consumer understanding Performance Innovation The bedrock for continued commercial success model Sustainable Pioneering R&D teams Focus on the science of taste and smell Broad product offering for diverse client portfolio Governance Operational excellence A culture of driving performance ReportFinancial Global spread of operations, with local presence Supply chain excellence, addressing customers’ unmet needs Sustainable sourcing of raw materials Givaudan SA – 03 Annual Report 2012 Overview Key events June World Perfumery Congress At the World Perfumery Congress in Connecticut, USA, Givaudan demonstrates that the world needs perfumery because of the universal nature of human emotion. Working in collaboration with the ‘7 billion Others’ project, filmed interviews with Givaudan perfumers illustrate how the emotion of the perfumer, relating to the need of the consumer, creates the power of fragrance. November The Art of Scent Givaudan is a major sponsor of The Art of Scent 1889-2012, the first museum exhibition dedicated to exploring the design and aesthetics of olfactory art through 12 pivotal fragrances, at the Museum of Arts and Design in New York, USA. January Finance Service Centre Following the successful introduction of the service centre for Finance in Europe in 2011, the Finance organisation announces the implementation of a new service centre for Latin America and North America. The new centre is based in Buenos Aires, Argentina, and managed and run by March Givaudan employees. Work-life balance We launch our formal position regarding supporting a work-life balance for our employees, underlining our commitment to provide a work environment that enables employees to engage in challenging careers while meeting the needs of the business and achieving their personal goals and interests. 04 – Givaudan SA Annual Report 2012 November Lavender partnership Our Innovative Naturals programme is expanded as we partner with the cooperative France Lavande and the French fragrant plants research organisation CRIEPPAM to support the production of healthy lavender Overview in France. May Russia tea seminar Strategy In Russia, Givaudan becomes the first flavour company to hold a tea seminar for customers, underpinning our industry leadership and showing we can bring value and innovation into customers’ brands. Over 65 guests representing about 35 companies from Russia and Ukraine attended the Performance one-day event in Moscow. October Hungary flavours factory model Sustainable Givaudan’s new savoury flavours and snack seasoning manufacturing facility is officially opened at Makó in Hungary. Production at the CHF 170 million facility, with a floor area of 50,000 sq m, is being progressively ramped up and will be fully operational by the end of 2013. Governance August ReportFinancial TasteSolutions™ March Sweetness Our TasteSolutions™ Sweetness toolbox Social networking and customer presentation for Beverages and Sweet Goods is expanded for a An initiative is launched to explore how global market where health and wellness adopting social networking tools and related challenges are growing and evolving, and behaviours can support our business where an estimated 50% of daily sugar strategy. Effective use of an internal social consumption comes from processed media platform has advantages such as foods and beverages. changing the way employees work together, collaborating, sharing knowledge and communicating on a global scale. Givaudan SA – 05 Annual Report 2012 Overview Our business What we do Where we do it Fragrance Division Mature markets Our talents extend across three business areas – 56% of Group sales Fine Fragrances, Consumer Products and Fragrance Representing 56% of the annual sales, mature markets such Ingredients – through which we create scents for leading as North America, Western Europe and Japan are expected brands worldwide. In-depth consumer understanding, a to grow slower than the developing markets but at the same high-performing research and development organisation time offer potential for growth in areas such as the increase and an efficient global operations network support our in demand for Health and Wellness products. business. Our perfumery team is the largest in the industry. Fragrance Division sales % Fine Fragrances Signature fragrances Line extensions 12% 19% Fragrance Ingredients Total 47% Internal use of Group 9,124 Third party sales sales Consumer Products Employees 69% Fabric & personal care Hair & skin care Household & air care Oral care Flavour Division We work with food and beverage manufacturers to develop flavours and tastes for market-leading products across all continents. We are a trusted partner to the world’s leading food and beverage companies, combining our global expertise in sensory understanding, analysis and 33 consumer-led innovation in support of unique product applications and new market opportunities.