1. Givaudan Treasury Transformation
Case Study
June 2016

2. Confidential and proprietary business information of Givaudan
Agenda
Givaudan: High level Company Overview
The Treasury Transformation Journey at Givaudan
Outlining the benefits
Questions?
Confidential and proprietary business information of Givaudan
June 2016

3. Givaudan – Fragrance & Flavour Industry Leader
People across the planet express their individuality through scent & taste that enrich their lives

4. Key facts and figures from 2015 full year results
Investment
in R&D
CHF 405 million
Free Cash Flow
CHF 604 million
Sales in Developing Markets 46 %
23.9
EBITDA %
Total Group Sales
CHF 4.4 billion
Confidential and proprietary business information of Givaudan
June 2016

5. Who we are at Givaudan ?
Collaborating together, we surprise consumers with unique, innovative ideas. We create moments of delight and touch people’s emotions.
11,000
ingredients purchased every year 82
locations
worldwide 33
production
sites
9,704
employees
60,000
products sold
every year
18%
Fine Fragrances
Signature fragrances
Line extensions
69%
Consumer products
Fabric and personal care
Hair and skin care
Household and air care
Oral care
13%
Fragrance and Cosmetic ingredients
Internal use
Third party sales
Total 48%
of Group
sales
36%
Beverages
Soft drinks
Fruit juices
Instant beverages
35%
Savoury
Ready-made meals
Snacks
Soups and sauces
Meat and poultry
15%
Confectionary
Baked goods
Sugar confectionary
Chocolate
Chewing gum
Total 52%
14%
Dairy
Ice cream and yoghurt
Desserts
Yellow fats (margarines)
FRAGRANCES
FLAVOURS
Confidential and proprietary business information of Givaudan
June 2016

6. Treasury Transformation
Leaving the specialist island behind….
Transformation
Innovation
Operational excellence
From a stand-alone centre of expertise to an integrated business support function
Strong focus on processes to deliver high value solutions for our business
Leverage the power of SAP, through standardisation & automation
Closely aligned with business objectives
Demonstrate solid understanding of the business
Balancing need for expertise coupled with strong soft skills
Definition of a clear Treasury Vision for Givaudan
“Centralisation unless” Philosophy
Outside – In design inputs
Think bold!
Harness the opportunities created via a single instance of SAP
High attention to automation in all areas
Embedded control environment
Confidential and proprietary business information of Givaudan
June 2016

7. Treasury Transformation
Key Building Blocks
Organisational Design
Cash Management
Risk Management
Internal & External capabilities defined, with supporting governance
The Financial Supply Chain Philosophy
Definition of Policy followed by flawless execution
Central Group Treasury Function with required capabilities, supported by light operational satellites at regional level
Removal of Treasury responsibility from local finance manager role
Central definition & ownership of bank relationships
Rationalisation of the banking group worldwide
In-House Bank with Global Cash Pools in all major currencies
Global Payment factory with “Pay on Behalf” concept
Two Banks worldwide for transactional processing
Global Banking Domains with strong focus on controls around access rights & also extraordinary payments
Definition of clear policies for managing market risks, most notably Fx
Detailed account mapping to ensure Fx exposures are accurately captured
Daily measurement of exposure directly from the source & automation of internal Fx
Integrated 360T for dealing activities
Business Continuity Plan for Global Treasury Activities
Confidential and proprietary business information of Givaudan
June 2016

8. Treasury Transformation
Overview of Results & Key Success Factors
Significant contribution to the Group
Key Success Factors
Compelling Returns in Financial Terms with a lower risk profile & a lean organisation
Clear Vision & a strong Mandate
> 80% of Group Liquidity controlled in the centre
98% of payment transactions are electronic
Fx results improved by in excess of CHF 20M p.a. & trading volume reduced by half
Banking Group reduced from more than 50 to around 15 worldwide, with close to 300 accounts closed
Operational banking costs reduced by c CHF 10M p.a.
Global Treasury Organisation: 12 FTE
Early warning & Fast Response Times
Upfront clarity on what you wish to achieve, including policy, process landscape & targeted organisational model
Select right people for the Treasury Roles of the future – balance between technical capability & soft skills
Strong mandate from the Group CFO & heavy investment in the change management journey
Systems enablers have to be in place – ERP, Banks, Peripheral systems
Relentless curiosity – never rest mentality!
Confidential and proprietary business information of Givaudan
June 2016

9. Thank you
Contact
Stewart Harris