Givaudan Treasury Transformation Case Study June 2016

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

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

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

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

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

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

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

Thank you Contact Stewart Harris Stewart.harris@givaudan.com