Resilient Sales in an Uncertain Market. Key Events. Creative Recognition. Client Focused Innovation. Leadership in Sustainability OVERVIEW 2011

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1 FIRNEWS 2011

2 OVERVIEW 2011 Resilient Sales in an Uncertain Market Firmenich posted resilient sales growth for its fiscal year ended June 30, 2011, recording increases in all geographic regions and across all business segments. Sales increased 5.8% in local currencies but declined 3.9% in Swiss Francs to reach CHF 2,781.6 million, as the strength of our reporting currency impacted us significantly. Geographically, emerging markets posted the strongest growth, led by Asia Pacific and China, and followed by robust sales in Western Europe, North America, Latin America and the Middle East. Creative Recognition During the perfume industry s 2011 Fifi Awards, Firmenich received unique recognition for its creativity and for leading consumer engagement in Fine Fragrances within two distinctive categories. First, with osmoz.com we won the Technological Breakthrough Information Technology of the Year Award for osmoz s iphone application. Designed to enhance the overall fragrance finding experience, the osmoz.com iphone app offers unique shopping features such as geolocation and fragrance barcode scanning, encouraging consumers to share their opinions about fragrances instantly within the community. Also, for the second consecutive year, a Firmenich fragrance received the coveted Fifi Hall of Fame Award. The 2011 award honored Issey Miyake s first fragrance, L Eau d Issey for women by Beauté Prestige International, in acknowledgment of its status as a modern classic which continues to achieve consumer awareness and global market success. Client Focused Innovation In our fiscal year 2011, we filed 36 new patent applications for new ingredients, processes and delivery systems. Also we continued to invest 10 percent of our annual turnover into innovation, an essential ingredient for thriving in the 21st century. Remaining focused on building our undisputed leadership in flavor and fragrance ingredients, we deepened our partnerships with leading universities and with scientific organizations worldwide. We also formed several new strategic collaborations with cutting edge companies to accelerate our innovation pipeline, allowing our clients to more fully leverage the value of our differentiated technology portfolio. Key Events The year was marked by the launch of our new 5 year plan, Embrace 2015, which outlines our ambitious targets and goals for growth under three core pillars: Think Client, Be Different and Remain True. Within the context of a rapidly developing global economy, we will achieve our strategy through strong leadership and the creativity of our employees, who are guided by our Fundamentals and driven by a passion for creating fragrances and flavors for the world s most desirable brands. During the year, we achieved the on-time and on-budget completion of our SAP S3 Enterprise Resource Planning program, as final key go-lives took place simultaneously in Brazil, Argentina, Colombia and India. In November 2010, we established our affiliate in China as a separate zone from Asia Pacific to provide all the attention and necessary autonomy to meet our ambitious growth plans there. Two new production sites, our flavor plant in the U.S.A. and our perfume ingredients plant in Gujarat, India, were both fully operational during fiscal year 2011, increasing our ability to provide best-in-class service to our clients in developed and emerging markets. Finally, an important capital investment milestone was reached for our Natural Ingredients Business. After the merger of two sites in Grasse and Seillans one year ago, the official inauguration of our Naturals Innovation Center in the South of France took place in May The new facility is designed to strengthen our expertise in natural ingredients through differentiated distillation and extraction techniques developed for our new state-of-the art labs. Leadership in Sustainability Fiscal year 2011 marks the first year of our ambitious 2015 sustainability objectives, aimed at improving the safety of our employees, our environmental footprint and establishing innovative global business partnerships to maintain our position as thought leaders in our industry. We gained a record 12 new third-party certifications in safety, quality and environmental management. Also, for the sixth consecutive year, we improved our safety performance with an overall improvement of 37% in employee safety over prior year.

3 Overview 2011 Throughout the year, we were honored to receive several special recognition awards from our clients in acknowledgment of our sustainability initiatives. Additionally, we were recognized by several sustainability experts, including the Clinton Global Initiative. In May 2011, Firmenich received the Responsible Business Award from Ethical Corporation in recognition of our commitment to Corporate Social Responsibility and the positive impact of our projects on business, society and the environment. In June, our retired Chairman, Fred-Henri Firmenich received the Marcos J. Bertin Quality in Governance Medal from the International Academy of Quality. Officer, succeeding Paul-Louis Gay, who left the Company after 10 years in this position. We would like to take this opportunity to thank all of our colleagues, for their hard work and for their winning combination of genuine values, passion, talent and commitment, which helped us to achieve the many brilliant distinctions awarded to the Company this year. We also take this opportunity to thank our clients for their commitment to our shared purpose of creating meaningful fragrances and flavors that inspire the lives of millions of consumers around the world, everyday. Family Ownership & Financial Independence Firmenich remained fully owned by the Firmenich family and committed to its independence, thanks to the financial solidity of the Group. During the year, Karen Jones C.B.E. was appointed to our Board of Directors, and Board members Olivier Bazil and Edward Moerk were re-elected for three-year terms. On January 1, 2011, Eric Nicolas was appointed Chief Financial Vernon Sankey Chairman of the Board Patrick Firmenich Chief Executive Officer

4 02 PERFUMERY

5 Perfumery Sales Grow Perfumery posted robust single-digit sales increases in local currencies, as positive performances were recorded across all segments. Fine Fragrance achieved exceptional double-digit sales growth in FY11, as our clients launched new brands in order to capture the imagination of global consumers and the hearts of younger audiences worldwide. At the same time, the resilient performance of our fragrance classics deepened our conviction in the creativity and talent of our perfumers coupled with the strength of our olfactive palette. Body and Home Care also posted sales increases, achieving solid growth. Sales progression was particularly strong in the laundry care category, as breakthrough innovations drove newness in fabric conditioners. Consumers also responded positively to new fragrance variants and product forms offered by air freshener brands. Additionally, outstanding performances were achieved at prestige specialty retail, in particular with body and skin care products, followed by robust sales of mass body perfume, deodorants and new hair care brands. Geographically, Western Europe posted the strongest growth, driven by Fine Fragrances and the positive momentum of sales to retail brands, followed by Asia Pacific and China, each recording healthy sales in the Home Care category. Latin America posted robust sales gains in Fine Fragrances while in North America, healthy single-digit sales growth was achieved in comparison to strong prior year performance, followed by the emerging markets of Eastern Europe, the Middle East and Africa. We also received special recognition from within our Industry, including a prestigious 2011 Beauty Oscar - Perfumer of the Year award from CosmétiqueMag which was given to Master Perfumer Jacques Cavallier at their annual ceremony in Paris, France. Also, during their 2011 ceremonies, Firmenich Fine Fragrances received creative recognition from the Fragrance Foundation, winning numerous Fifi Awards, including distinctions in two categories: Technological Breakthrough Information Technology of the Year Award and the coveted Fifi Hall of Fame Award. Perspectives We are deeply connected to the mission, purpose and values that fragrances inspire, connecting us to beauty in our everyday lives. Our perfumers are at the center of this mission, unleashing the force of their olfactive palette to create fragrances that capture the imagination of a new global consumer. Creativity Rewarded In FY11, Perfumery focused on reinforcing its core values of client intimacy, impeccable service levels and on differentiating fragrance signatures. These efforts were recognized by our clients worldwide. During the year, we received numerous awards in acknowledgment of our performance across a critical range of benchmarks, including overall creative excellence, driving consumer preference, contribution to business growth and for improved supply chain performance.

6 03 FLAVORS

7 Flavors Sales Rise Flavor sales posted high single-digit local currency growth with increases across all segments, as we broadened and deepened our market penetration in key emerging markets. Beverages posted the strongest growth, fueled by new product launches in innovative business segments, empowering our flavorists to create unique taste experiences for our clients brands. Sweet Goods followed, recording a robust sales performance achieved through innovation on classic tonalities that consumers love most, including vanilla, peppermint and citrus. In Savory Foods, sales growth was achieved across the categories of soups, sauces, snack foods and proteins, and driven by culinary passion and proprietary technologies. Geographically, growth was led by emerging markets. In particular, South East Asia, China and the Middle East all posted double-digit sales gains, followed by a strong single-digit performance in Latin America. In the developed markets, North America recorded very healthy growth followed by more modest sales in Europe and Japan. During the year, we created a new commercial zone fully dedicated to the emerging markets of India, the Middle East and Africa, allowing us to focus on broadening our knowledge of these cultures, deepening our consumer understanding and on strengthening service to our clients in these strategic regions. Supply Performance Rewarded Fiscal year 2011 marked the first year milestone of the integration of our supply chain activities within the Flavor Division. During the year, we were honored to receive two Supplier of the Year awards, in acknowledgment of our performance. Perspectives In FY11, we broadened our global footprint in consumer understanding and worked towards achieving impeccable service levels with our clients. Our key differentiators lie in our talent to innovate and our commitment to innovation. Inventing the Future of Taste Taste modulation is a cornerstone of the flavor business of the future. Today, our sweetness enhancing portfolio remains unmatched and to maintain and grow our leadership, during the fiscal year, we created a separate Taste Modulation Business Unit. We continued to invest in the future of taste through reinforced partnerships with cutting-edge start-ups and FMCG multinationals, driving the future of the taste experience. Through continuous innovation, we are increasing access to natural reduced calorie flavors and are continuing our focus on the development of value adding, great tasting, low sugar flavor solutions for foods and beverages that support healthier diets.

8 04 INGREDIENTS

9 Ingredients Sales Increase Ingredients sales posted a healthy single-digit sales increase in local currencies, achieving growth in the Synthetic and Natural segments for fiscal year In perfume ingredients, we recorded significant growth as Fine Fragrance sales surged throughout the year, increasing sales of our specialty and natural ingredients. In flavor ingredients, an increased demand for authenticity flavors drove strong sales gains. During the second half of the year, the global ingredients market continued to face strong competition, in particular from emerging markets. We maintained our leadership position and remain committed to our investment in highvalue added ingredients. Throughout the year, we launched our Sharing Innovation promotion to our global Perfumery and Flavor clients, showcasing a winning combination of differentiated signature products. At the same time, we continued investing in new methods of producing existing materials at more competitive costs. By expanding our innovation pipeline, we are improving service to our clients. In FY11, our new perfumery ingredient production plant in Gujarat Province, India became fully operational, as all the necessary process steps were taken to ensure our ability to respond to the growing demand from the global perfumery market. In May 2011, we officially inaugurated our Naturals Innovation Center in the South of France. This new, state-of-the-art facility is designed to strengthen our expertise in differentiated natural ingredients. Perspectives Firmenich will continue to focus on maintaining leadership in innovative, high-value-added ingredients for the Fragrance and Flavor business, while pursuing investments in new methods of producing quality raw materials at lower costs. Focused on Innovation In FY11, we began the commercialization of our collection of specialty flavor ingredients, which are produced according to specific natural processes for flavor applications. Our palette introduced a broad spectrum of new tonalities, ranging from fresh green notes to more exotic, creamy coconut flavors. For our perfumery clients, the launch of our Sharing Innovation promotion dedicated its focus to the market introduction of five new ingredients, including a spicy coumarin note with a creamy touch, a high performing woody amber note and a blooming white floral.

10 05 RESEARCH & DEVELOPMENT Capitalizing on Today s Strengths Firmenich maintained its industry leadership in proprietary perfumery and flavor ingredients and in application technologies, continuing our above industry-average investment in R&D. We introduced three new perfume ingredients during the year. In response to demand from our Fine Fragrance clients, who continuously search for the highest quality natural ingredients, a pulpy fruit note was created with our FirAd technology, allowing us to achieve a superior extract with a very unique olfactive profile. Also five new flavor ingredients were introduced, including new notes for Savory Foods. Through our proprietary technologies, we have discovered a wide range of new smoky notes, including unique tonalities captured from the steam of Brazilian coffee. Inspiring discoveries like these lead to new and distinctive signatures for fragrance and flavor products. Investing in Capabilities for the Future During the year, we filed 36 new patent applications for new ingredients, processes and delivery systems. We remain committed to creating value for our clients through science, reinforcing our Partner to Win program, which promotes the development of scientific discoveries and innovations from our global team of R&D scientists in partnership with our network of external research partners. Over the past year, many of these discoveries have enabled our perfumers and flavorists to raise the value of their creations through increased performance and cutting-edge innovation, enhancing the unique pleasures of everyday taste and smell experiences they create for our clients and consumers worldwide.

11 Corporate Management - From left to right: Jean-Marc Mommer, Armand de Villoutreys, Eric Nicolas, Patrick Firmenich, Aldo Uva, Friedrich Busse, Antoine Gautier, Robert Weinstein Board of Directors Corporate Management Mr. Vernon Sankey Chairman Mr. Yves Boisdron Vice Chairman Mr. Patrick Firmenich CEO Mr. Olivier Bazil Mr. Antoine Firmenich Ms. Karen Jones (as of June 2011) Mr. Gérald Meyer Mr. Edward S. Moerk Mr. André Pometta Secretary to the Board Mr. Dominique Graz Mr. Patrick Firmenich Mr. Friedrich Busse Mr. Armand de Villoutreys Dr. Antoine Gautier Mr. Jean-Marc Mommer Mr. Eric Nicolas Mr. Aldo Uva Dr. Robert Weinstein Chief Executive Officer Corporate Vice President Strategic Development President Perfumery Division Corporate Vice President Research & Development Corporate Vice President Human Resources Chief Financial Officer & Corporate Vice President Global Services (as of January 2011) President Flavor Division President Ingredients Division

12 Firmenich creates Flavors and Fragrances for the world s most desirable brands. Reflecting our continuous desire to understand, share and sublimate the best that nature has to offer, we are pleased to feature the work of artist Fulvio Bonavia. A sustainable choice of paper - This report is printed on FSC-labeled 60% recycled paper