2022 Governance, Compensation and Financial Report

2022Governance,CompensationandFinancialReport Aboutthisreport Beingasustainablebusinessisourpromise,actingasaforceforgood isourobjective.Guidedbyourpurposeof‘Creatingforhappier,healthierliveswithlovefornature.Let’simaginetogether.’wewillcontinuetodeliversustainablevaluecreationthatbenefitsall. Thisstand-alonedocumentprovidesdetailsofourstableandefficientcorporategovernanceandcompensationprinciplesthatensureoursustainablevaluecreation.Ourcomprehensivefinancialperformancemaybefoundintheconsolidatedfinancialreportandstatutoryfinancialreport,whileourAlternativePerformanceMeasuresisdetailedintheappendix. Frameworksapplied ›SIXDirectiveCorporateGovernance ›SwissCodeofBestPracticeforCorporateGovernance ›IFRS ›AlternativePerformanceMeasures 2022reportingsuite ›IntegratedAnnualReport ›Governance,CompensationandFinancialReport ›DigitialIntegratedAnnualReport ›SustainabilityReport Ourlong-termambition:Ourpurpose Creatingforhappier,healthierliveswithlovefornature.Let’simaginetogether. Ourmid-termpriorities:Our2025strategy CommittedtoGrowth,withPurpose growth 4–5% Purpose targets linked >12% FCF CreationsNaturePeopleCommunities Ayearinreview GovernanceReportCompensationReportConsolidatedFinancialReportStatutoryFinancialReportAppendix Tableofcontents 4 7 54 125 139 Ayearinreview Ourkeyfiguresin20225Givaudanataglance6 Governancereport Ensuringproper checksandbalances8 Groupstructure andshareholders9Capitalstructure10BoardofDirectors12ExecutiveCommittee23 Compensation, shareholdingsandloans27 Shareholders’ participation28 Changeofcontroland defencemeasures29Auditors30Informationpolicy31Quietperiods32 Compensationreport Reflectingbusinessandindividualperformance34 Compensation governance35Compensationprinciples37 Compensationof Givaudanexecutives39 Compensationofthe ExecutiveCommittee46 Compensationof theBoardofDirectors48Shareownership50 Reportofthe statutoryauditor51 Consolidated financialreport Consolidatedfinancialstatements56 Notestotheconsolidated financialstatements60 Reportofthe StatutoryAuditor117 Statutory financialreport StatutoryfinancialstatementsofGivaudanSA(Group HoldingCompany)127 Notestothestatutory financialstatements128 Appropriationof availableearnings134 Reportofthe StatutoryAuditor135 Appendix Alternativeperformance measures140 Givaudanregistered offices142Ourreportingsuite148 Ayearinreview GovernanceReportCompensationReportConsolidatedFinancialReportStatutoryFinancialReportAppendix Ayearinreview Ourkeyfiguresin20225 Givaudanataglance6 Givaudan–2022Governance,CompensationandFinancialReport4 Ayearinreview GovernanceReportCompensationReportConsolidatedFinancialReportStatutoryFinancialReportAppendix Ourkeyfiguresin2022 GROUP–SALES InmillionSwissfrancs TASTE&WELLBEING–SALES 3,404 3,002 3,398 3,593 3,861 InmillionSwissfrancs FRAGRANCE&BEAUTY–SALES InmillionSwissfrancs 7,117 2018 2019 2020 2021 2022 5,527 6,322 6,203 6,684 7,117 2018 2019 2020 2021 2022 2,799 2,525 2,924 3,091 3,256 2018 2019 2020 2021 2022 CHF 5.3 Sales,like-for-like¹ % Salesgrowth million FREECASHFLOW InmillionSwissfrancs COMPARABLEEBITDAMARGIN5-YEARSSHAREPRICEDEVELOPMENT InSwissfrancs 787 703 843 811 479 21.5% 21.0% 22.5% 22.8% 20.9% 5,000 4,000 2018 2019 2020 2021 2022 3,000 % 6.7 Freecashflowasa%ofsales 67.00 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2,000 CHF Dividendpershare 1.Like-for-likeexcludestheimpactofcurrency, acquisitionsanddisposals. Ayearinreview GovernanceReportCompensationReportConsolidatedFinancialReportStatutoryFinancialReportAppendix Givaudanatglance 46% ofGroupsales 54% ofGroupsales Our2businessactivities Fragrance&Beauty Taste&Wellbeing NorthAmerica EuropeAfricaand 26%ofsales Middle-East 13productionsites 18%ofemployees 46%ofemployees 37%ofsales 35productionsites LatinAmerica 12%ofsales AsiaPacific 14%ofemployees 25%ofsales 11productionsites 22%ofemployees 19productionsites 166 sitesworldwide 78 productionsites 65 creation&researchcentres >16,670 fulltimeemployees >11,780 customersatagloballevel >126,560 productssoldperyear Ayearinreview GovernanceReportCompensationReportConsolidatedFinancialReportStatutoryFinancialReportAppendix GovernanceReport Ensuringproperchecksandbalances8Groupstructureandshareholders9Capitalstructure10 BoardofDirectors12 ExecutiveCommittee23 Compensation,shareholdings andloans27 Shareholders’participation28Changeofcontroland defencemeasures29 Auditors30 Informationpolicy31 Quietperiods32 Givaudan–2022Governance,CompensationandFinancialReport7 Ayearinreview GovernanceReportCompensationReportConsolidatedFinancialReportStatutoryFinancialReportAppendix Ensuringproperchecksandbalances Ensuringproperchecksandbalances Wetakeprideinourtransparentgovernance,whichensureswemanageandsuperviseouroperationsinaresponsibleway.OurstructuresandprocessesforthedirectionandcontrolofourCompanysupportacontinuedfocusonvaluecreationforallourstakeholders. ThisGovernancereportisalignedwithinternationalstandardsandhasbeenpreparedinaccordancewiththe‘SwissCodeofObligatio