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2021
Integrated Annual Report
2021
Integrated
Annual Report
2021 Integrated Annual Report
  • A year in review
  • Givaudan in figures
  • Strategic value creation
  • Compensation and governance
  • Download centre
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A year in review

through our 2021 key figures, our Chairman’s letter and CEO interview

A year in review

through our 2021 key figures, our Chairman’s letter and CEO interview

Givaudan in figures

our performance, sustainable performance review and sustainability indicators

Givaudan in figures

our performance, sustainable performance review and sustainability indicators

Strategic value creation

through our 2025 strategy, our purpose and our business model

Strategic value creation

through our 2025 strategy, our purpose and our business model

Compensation and governance

highlights of our compensation and corporate governance reports

Compensation and governance

highlights of our compensation and corporate governance reports

Download centre

Our download centre provides the platform to browse our different sections of the Integrated Annual Report and other publications

Download centre

Our download centre provides the platform to browse our different sections of the Integrated Annual Report and other publications
  • 12021 Key figures
  • 2Chairman’s letter
  • 3CEO interview
A year in review
2021 Key figures

“I am very pleased with the successful start that we have made into our 2025 strategic cycle, with all parts of our business and our strategic focus areas contributing to the strong financial results that we have achieved in 2021,” said CEO Gilles Andrier. “With the continuing challenges of the COVID-19 pandemic during 2021, I am extremely grateful to all of the Givaudan employees around the world for their continued focus and commitment in supporting our customers throughout the difficult conditions we have faced over the last two years.”

  

CHF MILLION
6,684
SALES
SALES UP
7.1%
ON A LIKE-FOR-LIKE
BASIS1
FREE CASH FLOW
12.6%
OF SALES
PROPOSED2
DIVIDEND CHF
66.00
PER SHARE

 

  1. Like-for-like excludes the impact of currency, acquisitions and disposals.
  2. Subject to shareholder approval at the AGM on 24 March 2022.
Givaudan in figures
explore
  • 1Our performance
  • 2Sustainable performance review
  • 3Sustainability indicators
Givaudan in figures
Our performance

We sustained good business momentum whilst maintaining our operations and global supply chain at a high level, despite ongoing challenges in certain parts of the supply chain. Strong sales were achieved across all markets and with all customer groups, and all our 2025 strategic focus areas are on track and contributing to the results.

CHF 6,684
million sales
 
 
7.1%
sales growth
LFL¹
 
12.6%
free cash flow
as a % of sales
 
CHF 843
million
free cash flow
 
CHF 66.00
proposed dividend²
per share
 
22.2%
EBITDA margin
 
 
  1. Like-for-like excludes the impact of currency, acquisitions and disposals.
  2. Subject to shareholder approval at the AGM on 24 March 2022.
Strategic value creation
explore
  • 1Our 2025 strategy
  • 2Acting as a force for good - our purpose
  • 3Our business model
Strategic value creation
Our 2025 strategy

Committed to Growth, with Purpose 

Our 2025 strategy is derived from our purpose, and sets out our roadmap to deliver sustainable value creation over the next five years for all our stakeholders. 

Committed to Growth, with Purpose outlines our intention to deliver growth in partnership with our customers, achieve ambitious financial targets, while also making progress on our longer term purpose ambitions in the areas of creations, nature, people and communities.

This is supported by our ongoing journey to becoming a B Corp certified company, helping us to live up to the highest standards of being a responsible and sustainable business as we strive to be a force for good. Our certification will be the independently verified proof that we are acting on our purpose goals and successfully balancing people, planet and profit.

Our 2025 strategy is powered by three core growth drivers and four growth enablers, and supported by our focus on Excellence, Innovation, Simplicity in everything we do.

Givaudan, a high performing company that is acting as a force for good

GROWING TOGETHER WITH OUR CUSTOMERS

At the core of our business is our relationship with our customers. Providing them with creative, innovative and sustainable solutions that are loved by consumers is what motivates us every day.

Going beyond our current portfolio to further expand into nutrition, food ingredients and beauty.

          Expand the PORTFOLIO

Maximise mature market opportunities at the same time as extending our high growth market leadership.

     Focused MARKET strategies

Embracing opportunities in today’s more fragmented customer landscape and driving growth in the local and regional customer segment.  

         Extend CUSTOMER reach

Expanding strategic relationships with suppliers, start-ups and partners; enhancing co-creation with customers. 

strategy
CREATIONS

Further embedding environmental sustainability in our product portfolio and continuing our efforts in sourcing responsibly.  

strategy
NATURE

Nurturing a diverse and inclusive workforce; evolving workplace trends; caring for employee health and wellbeing.

strategy
PEOPLE

Bringing benefits to all communities that work with us, including the communities where we source and operate.

strategy
COMMUNITIES

Delivering the highest standards across our value chain, from operational and financial performance to the delivery of a superior customer experience.

Excellence, Innovation & Simplicity – in everything we do

Image
ESG, an integral part of the business

ESG, an integral part of the business

Fully integrated in our 2025 strategy

 

Our 2021 key achievements

Expand the portfolio
Extend customer reach
Focussed market strategies
Excellence, Innovation & Simplicity – in everything we do
Tab Content

We’re expanding our traditional portfolio of flavours and fragrances, naturals and delivery systems into nutrition, food ingredients and beauty. This broader offering helps customers better respond to consumer demand for products that support health and wellbeing, positive ageing and changing lifestyles while meeting their expectations around ethical and responsible business issues.

  

Our strategy in action

Image
Coloured ice cream

Expanded our offerings for the consumer-packaged goods and luxury segments with the acquisition of 25% of B.Kolormakeup & Skincare of Italy (b.kolor).

Introduced Blossom Lab™, a fully equipped mobile laboratory to help create naturals extraction techniques directly in the field.

Acquired DDW, The Color House. This will reinforce our ability to create multi-sensorial food experiences with our customers and enables us to become the number two global player in natural colours.

Advanced the development of numerous biotechnology-based ingredients with external partners. A key ingredient, developed with Manus bio, will be launched in early 2022.

    Tab Content

    The trend for smaller and local brands is driving growth in the local and regional customer segment alongside a continued potential with larger international and global customers. We want to provide more tailored approaches to meet the wider range of customer needs in this rapidly changing and more fragmented landscape.

     

    Our strategy in action

    Image
    Nordic Experience Centre in Mälmo, Sweden

    Opened state-of-the-art product development facilities to accelerate innovation for customers (protein centres and the Nordic Experience centre in Malmö, Sweden).

    Invested CHF 75 million to expand our fragrance production at Pedro Escobedo in Mexico, to open at the end of 2023, serving all customer segments in the Latin American key growth market.

    Strengthened our e-commerce offering in China through the opening of a flagship business-to-business (B2B) store on China’s leading wholesale website, 1688.com.

    Acquired Custom Essence to strengthen access to local and regional customers and expand capabilities in natural perfumery in North America.

      Tab Content

      We’re responding to growth forecasts in global consumption and investing in high growth markets to ensure greater proximity to our customers and develop further understanding of local consumer preferences. We plan to maximise mature market opportunities over the next  five years and extend our high growth market leadership, particularly in China.

       

      Our strategy in action

      Image
      Opening Digital Space in Shanghai, China

      Planned greenfield production plant in India for fragrance speciality ingredients through a joint venture with Privi Speciality Chemicals.

      Partnered with Tmall to launch T-Lab source innovation laboratory, leveraging our creative fragrance solutions and production capabilities in China.

      Launched our unique Advanced Tools for Modelling which uses artificial intelligence to optimise food and flavour formulation and facilitate co-creation and collaboration with customers.

        Tab Content

        From excellence in operational and financial performance to the delivery of a superior customer experience, we aim to deliver the highest standards across the value chain. Innovation is our lifeblood, from creating differentiating solutions that address our customers’ challenges to leading the way in areas such as biotechnology and digitalisation. At the centre of everything we do are our customers.

         

        Our strategy in actions

        Image
        Excellence, Innovation & Simplicity – in everything we do

         

        Good progress in integrating recently acquired companies on our platforms such as SAP and GBS, as well as on our creation, development and commercial systems. Key steps to support our strategy.

        Launched the Aroma Kiosk, a new digital sensory insights tool, designed to connect with consumers directly, gather valuable consumer insights and recommend products in real time.

        Introduced PlanetCaps™, enabling customers to solve the complex feasibility equation between greenness and performance in fabric softeners. This cutting-edge technology will be expanded to other categories to boost sustainability.

        Partnered with BASF to launch the world’s first toxicology testing strategy without animal testing.

        Started a ‘silver lining’ project to find positive opportunities from the difficult pandemic situation. Five areas have been identified that will contribute to enhancing our work life and how we serve customers. Work is underway to define key initiatives and guidance that will be rolled out in the short and long term.

          GOVERNANCE
          At the forefront of animal-free testing
          explore
          GOVERNANCE
          At the forefront of animal-free testing

          Our purpose is creating for happier, healthier lives, with love for nature – and that means we care about animal welfare, too.

          This is why we work for animal-free testing in fragrances and cosmetics, and we are proud of our achievements.

          READ THE STORY

          Compensation and governance
          explore
          • 1Compensation
          • 2Effective and transparent corporate governance
          Compensation and governance
          Compensation

          Our compensation policies are an essential component of our employee value proposition and a key driver of both individual and business performance

          The ability to attract, motivate and retain the right talented employees globally is key to the continued success of Givaudan. Our competitive remuneration policy supports this ambition and is based on the following principles: 

          • Pay for performance
          • Alignment of interests
          • External competitiveness
          • Internal consistency and fairness.

            
          Total compensation in 2021 is composed of the following elements:

          • Base salary for all employees.
          • Benefits for all employees (including retirement, insurance and health care plans).
          • Cash-based Profit Sharing Plan for approximately 12,000 non-management employees based on Group financial objectives.
          • Cash-based Annual Incentive Plan for around 5,000 managers and executives. 
          • Equity-based Performance Share Plan (PSP) for the top 500 employees.

            
          The Performance Share Plan (PSP) is designed to reward executives and key talent who significantly influence the long-term success of the business and our purpose ambitions. From 1 January 2021, a new PSP aligned with the Givaudan purpose was introduced. The financial metrics of sales and free cash flow traditionally used to calculate the PSP are retained, and are complemented by non-financial criteria linked to three of the four focus areas of the Givaudan purpose: 

          • Creations: Financial targets of sales and free cash flow
          • Nature: Environmental targets of net GHG emissions reduction (scope 1, 2 and 3)
          • People: Social targets of senior leader diversity (women and high growth market representation) and employee safety

           

          Performance Share Plan for top 500 employees

          Image
          Performance Share Plan for top 500 employees

           

          Compensation of the Board of Directors

          The compensation paid to the Board members for the period between the 2020 and 2021 Annual General Meetings, CHF 3,280,206, is again within the amount approved by shareholders at the 2020 Annual General Meeting CHF 3,400,000. Amounts approved at the 2021 Annual General Meeting CHF 3,250,000 will be paid by the end of the year in office and validated in the 2022 Compensation report. Such approved and paid amounts may differ from those shown in the Board compensation summary table which, according to the OaEC, must include compensation paid in the reporting year.

          Board of Directors compensation summary

          in Swiss francs Year

          Director

          fees 3

          Committee

          fees 3

          Total fixed

          (cash)

          Number of RSUs

          granted 4

          Value

          at grant4

          Total 

          compensation

          Calvin Grieder, Chairman 1 2021 400,000 65,000 465,000 169 580,566 1,045,566
            2020 400,000 65,000 465,000 208 581,256 1,046,256
          Victor Balli 1 2021 100,000 72,500 172,500 42 144,283 316,783
            2020 100,000 50,000 150,000 52 145,314 295,314
          Prof.Dr-Ing. Werner Bauer 1 2021 100,000 65,000 165,000 42 144,283 309,283
            2020 100,000 65,000 165,000 52

          145,314

          310,314
          Lilian Biner 1 2021 100,000 25,000 125,000 42 144,283 269,283
            2020 100,000 25,000 125,000 52 145,314 270,314
          Michael Carlos 1 2021 100,000 65,000 165,000 42 144,283 309,283
            2020 100,000 65,000 165,000 52 145,314 310,314
          Ingrid Deltenre 1 2021 100,000 50,000 150,000 42 144,283 294,283
            2020 100,000 50,000 150,000 52 145,314 295,314
          Thomas Rufer 1,6 2021 25,000 13,750 38,750 13 36,329 75,079
            2020 100,000 55,000 155,000 52 145,314 300,314
          Olivier Filiol 1,7 2021 100,000 50,000 150,000 42 144,283 294,283
            2020 75,000 37,500 112,500 39 108,986 221,486
          Sophie Gasperment 1,8 2021 100,000 25,000 125,000 42 144,293 269,283
            2020 33,333 8,333 41,666 17 47,507 89,173
                         
          Total compensation 2 2021           3,183,126
          Total compensation 2 2020           3,138,799
          1. The function of each member of the Board of Directors is indicated on pages 7-9 in both the 2020 Governance report and the 2021 Governance Report.
          2. Represents total compensation of the Board of Director paid in respect of the reporting year, reported in accordance with the accrual principle.
          3. Represents Director and Committee fees paid in respect of the reporting year, reported in accordance with the accrual principle.
          4. 2021 RSUs blocking period end on 15 April 2024; 2020 RSUs end on 15 April 2023.
          5. Economic value at grant according to IFRS methodology, with no discount applied for the blocking period.
          6. Thomas Rufer retired at the AGM in March 2021.
          7. The 2020 figures represent compensation from April to December 2020.
          8. The 2020 figures represent compensation from September to December 2020.
             

          Estimated social security charges based on 2021 compensation amounted to CHF 263,416 (2020: CHF 259,320).

          Compensation of the Executive Committee

          Total Executive Committee (EC) compensation reported in 2021 remained stable compared to 2020, representing full year compensation for seven members (including the CEO). The compensation paid is within the amounts approved by shareholders at the respective Annual General Meeting. The fixed and long term variable compensation approved for 2021 was CHF 15,400,000 (2020: CHF 15,300,000). The annual incentive, short term variable compensation amount for 2021 was CHF 5,461,355 and will be submitted for approval at the 2022 Annual General Meeting (2020: CHF 4,812,783).

          Executive Committee (EC) compensation summary

          in Swiss francs Year

          Base

          salary

          Pension

          benefits 2

          Other

          benefits 3

          Total

          fixed

          compensation

          Annual

          incentive 4

          Number of

          performance

          shares granted 5

          Value at grant 6

          Total

          variable

          compensation

          Total

          compensation

          Employer

          social

          security 7

          Gilles Andrier, CEO 2021 1,221,418 578,371 141,079 1,940,868 1,862,933 728 2,500,898 4,363,831 6,304,699 525,879
            2020 1,211,084 574,237 145,344 1,930,665 1,636,536 895 2,501,078 4,137,614 6,068,279 504,728
          EC, excluding CEO 1 2021 3,228,752 1,086,554 388,786 4,704,092 3,598,422 1,688 5,798,786 9,397,208 14,101,300 1,073,231
            2020 3,336,973 1,036,769 433,184 4,806,926 3,176,247 2,077 5,804,177 8,980,424 13,787,350 1,029,178
                                 
          Total: EC, including CEO 2021 4,450,170 1,664,925 529,865 6,644,960 5,461,355 2,416 8,299,684 13,761,039 20,405,999 1,599,110
            2020 4,548,057 1,611,006 578,528 6,737,591 4,812,783 2,972 8,305,255 13,118,038 19,855,629 1,533,906
          1. Represents full year compensation of six Executive Committee members.
          2. Company contributions to broad-based pension and retirement savings plans and annualised expenses accrued for supplementary executive retirement benefit.
          3. Represents annual value of health and welfare plans, international assignment benefits and other benefits in kind.
          4. Annual incentive accrued in reporting period based on performance in the reporting period.
          5. 2021 Performance Shares vest on 15 April 2024, 2020 Performance Shares vest on 15 April 2023.
          6. Value at grant calculated according to IFRS methodology and based on 100% achievement of performance targets.
          7. 2021 estimated social security charges based on 2021 compensation; 2020 estimated social security charges based on 2020 compensation.

           

          Ownership of Givaudan securities

          As per 31 December 2021, the Chairman and other Board members, including persons closely connected to them held 6,813 Givaudan shares in total, the Chief Executive Officer and other members of the Executive Committee, including persons closely connected to them, held 8,053 Givaudan shares. Oner person closely connected to a member of the Executive Committee owned 184 unvested Performance Shares as at 31 December 2021.

          Board of Directors: ownership of Givaudan securities

          2021
          in numbers
          Shares Blocked RSUs
          Calvin Grieder, Chairman 947 629
          Victor Balli 248 157
          Prof. Dr-Ing. Werner Bauer 1,428 157
          Lilian Biner 735 157
          Michael Carlos 1,260 157
          Ingrid Deltenre 365 157
          Olivier Filliol 1,200 94
          Sophie Gasperment  - 72
          Total 2021 6,183 1,580
          Total 2020 6,501 1,962

           

          Executive Committee: ownership of Givaudan securities

          2021
          in numbers
          Shares Unvested
          Performance Shares
          Gilles Andrier, CEO 4,600 2,715
          Tom Hallam 278 1,141
          Louie D'Amico 525 1,270
          Maurizio Volpi 801 1,357
          Simon Halle-Smith 706 815
          Willem Mutsaerts 434 815
          Anne Tayac 525 815
          Total 2021 7,869 8,928
          Total 2020 6,312 10,937


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          Our reporting suite

          Annual reports
           

          2021 Integrated Annual Report PDF (12.67 MB)
          2021 Integrated Annual Report Highlights PDF (4.14 MB)
          2021 Governance, Compensation and Financial Report PDF (3.34 MB)

           

          Investors
           

          2021 Full Year Results Presentation PDF (1.44 MB)
          2021 Financial Summary PDF (287.47 KB)
          2021 Alternative Performance Measures PDF (43.96 KB)

           

          Sustainability
           

          2021 GRI Sustainability Report PDF (8.00 MB)
          2021 GRI Content Index PDF (88.37 KB)
          2021 ESG overview PDF (3.69 MB)
          2021 SASB Standards PDF (37.48 KB)
          2021 TCFD Recommendations PDF (35.67 KB)
          2021 CDP Report on Climate Change PDF (347.46 KB)
          2021 CDP Report on Water Security PDF (317.06 KB)

            

          Company news in English, French and German
           

          Company news PDF (386.05 KB)
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          Unternehmensmitteilung PDF (383.64 KB)