Overview 2010 RECORD SALES

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Maud Carpenter
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1 FiRNEWS 2010

2 Overview 2010 RECORD SALES Firmenich posted record sales for its fiscal year ended June 30, 2010, regaining its position as growth leader in the fragrance and flavor industry amid global restocking after the worst recession in recent history. Sales increased 12.1% in local currencies, 8.7% in Swiss Francs, to reach CHF million. This performance was driven by double-digit growth in Perfumery and Flavor segments, with a particularly strong rebound in Fine Fragrance during the second half of the year. Our perfume and flavor ingredients business followed the trend, recording a healthy performance and consolidating our leadership in this key area to help our clients differentiate their brands. Geographically, emerging markets posted the strongest growth, led by the Eastern Europe, Middle East and Africa region, followed by Asia Pacific and Latin America. North America and Western Europe also posted robust results. MARKET PENETRATION BROAD AND DEEP In Februray 2010, we opened a new affiliate in Dubai, United Arab Emirates, to strengthen our presence in the Gulf region. This will enable us to deepen our understanding of local consumers and markets, and increase our offering of fragrances and flavors adapted to local tastes. We also inaugurated a new state-of-the-art perfume and flavor development center at our affiliate in Brazil. This will further expand our market presence in Brazil and across the Latin American region. Two new production sites were opened during the year to reinforce our ability to respond to global demand and optimize service, costs and environmental footprint. We opened a new Perfume ingredients plant in Gujarat Province, India. The site will support our perfumery business, complementing our ingredients site in Geneva. At the end of the year, production also began at our new state-of-the-art flavor encapsulation site in the US. CREATIVE RECOGNITION Firmenich received unique recognition of its exceptional creativity in two distinctive categories during the perfume industry s 2010 Fifi Awards. Firmenich and Master Perfumer Harry Fremont won the Perfume Extraordinaire of the Year, which is the only award given directly to a Fragrance House and perfumer. Firmenich also received the Fragrance Hall of Fame Award for Ck one Calvin Klein, by Coty Prestige, created by Firmenich Master Perfumers Alberto Morillas and Harry Fremont in This was in addition to a total of sixteen 2010 Fifi Awards attributed to Fine Fragrance brands featuring Firmenich perfumes in the US and Europe. INNOVATION GATEWAY TO THE FUTURE We continued to invest 10 percent of our annual turnover in innovation, as a key to future success. This included the development of new ingredients to inspire new pleasures in taste and smell. We also pursued new ways to support healthier diets through the reduction of sugar and salt in foods and beverages. We signed a new partnership agreement with US firm Senomyx, licencing sweet enhancers to develop Flavor solutions that will help our clients improve the nutritional profile of their products, without compromising on taste. The agreement complements Firmenich s existing line of flavor enhancers. At the end of the year, we were honored to receive the Nestlé Innovation Partnerships Award 2010, becoming the first Flavor house to obtain this distinction. During the year, we filed a total of 32 new patent applications for new fragrance and flavor ingredients, unique delivery systems and original processes. KEY EVENTS The year was also marked by the launch of a revised edition of our Fundamentals. While our core values have not changed, their expression was adapted to today s world to ensure our employees continue to identify with them as an integral part of Firmenich s unique identity. We also evolved the Group s organization, moving from two to three commercial divisions (Perfumery, Flavors and Ingredients), and folded our supply chain activities into each division. The move aims to optimize service to our clients across global, regional and local markets, as well as production costs and efficiencies, thanks to a seamless path from creation to delivery. The implementation of our SAP-based Enterprise Resource Planning program advanced according to plan, with roll-outs in

3 Overview 2010 Europe, North America and Asia Pacific, in South Africa and our new affiliate in Dubai. At the end of June 2010, 70 percent of our business was managed on the system and the program was on track for completion in July SUSTAINABLILITY The end of our 2010 fiscal year marked the close of our ambitious 2010 sustainability goals, with all seven performance indicators exceeded and new goals set for We improved our safety performance for the fifth consecutive year. Since 2005, our safety in terms of Total Recordable Cases has improved by 65 percent. Similarly, compared to the baseline year of FY05, we achieved our five environmental indicators, with a 24 percent reduction in our CO2 emission rate, a 29 percent drop in our VOC rate and a 23 percent decrease in our process water usage rate. For 2015, we have set targets to further improve all safety and environmental indicators. In June 2010, a large solar installation at our US site in New Jersey became operational with over 3,000 photovoltaic panels. It is one of the largest solar installations in the North East of the US. The panels produce approximately one megawatt of clean solar power and will provide about 12 percent of the electrical energy used in our Princeton Plant. The power produced by this investment is calculated to save more than 900 metric tonnes of carbon dioxide emissions annually. We gained six new external certifications in the areas of safety, quality and environmental management. He was succeeded by Aldo Uva, who became President Flavors Division as of January 1, The head of the Perfumery Division, Michel Bongi, retired on June 30, 2010, after 39 years with the company. He is succeeded by Armand de Villoutreys as President Perfumery Division, as of July 1, We extend our appreciation to Don and Michel for taking our Fragrance and Flavor businesses to new heights during their tenure and wish them all the best for the future. We also take this opportunity to thank all our colleagues for their passion, talent and commitment, which are at the heart of our ongoing success. Similarly, we sincerely thank our clients, suppliers and local communities for their confidence and the quality of the relationships that enable our mutual success. Our new fiscal year begins amid continued economic uncertainty. We will focus on implementing our 2015 strategy and leveraging our strength in creative and value-added fragrances and flavors for markets across the world. 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, Charles Firmenich retired from our Board of Directors and as Vice Chairman of the Board. We take this opportunity to warmly thank Charles Firmenich for his longstanding contribution to the Firmenich Group. Yves Boisdron was appointed Vice-Chairman and Antoine Firmenich was appointed to the Board. At the end of December 2009, the head of the Group s Flavor Division, Don Hartman, retired after 38 years with the company. Vernon Sankey Chairman of the Board Patrick Firmenich Chief Executive Officer

FLAVORS INDUSTRY-LEADING GROWTH Flavor sales posted double-digit local currency growth, with significant increases across all segments, as we regained our position as growth leader in the flavor

4 FLAVORS INDUSTRY-LEADING GROWTH Flavor sales posted double-digit local currency growth, with significant increases across all segments, as we regained our position as growth leader in the flavor industry. Our leadership in key tonalities like citrus and vanilla drove our sales in Beverages, Savory Foods and Sweet Goods, as consumers continued the back to basics philosophy adopted during the crisis. Beverages posted the strongest rebound, fuelled by an extended dry season and the improved economic environment. Savory Foods followed, with particularly strong growth in soups and sauces. Similarly, Sweet Goods recorded strong results. Geographically, emerging markets drove growth in our flavor business, with double-digit growth in Asia Pacific, our Eastern Europe, Middle East & Africa region and Latin America. The developed economies of Western Europe and North America posted a healthy though more modest performance. INNOVATION & CREATIVE EXCELLENCE Our innovation in flavors remained strong and was reinforced by partnerships with a range of firms, from cutting-edge start-ups to established FMCG multinationals, with which we are developing the next generation of flavor solutions. Key areas of innovation included salt and sugar enhancers, under our ModulaSense brand, differentiated flavor delivery systems, and unique citrus, vanilla and seafood flavor solutions to help our clients build successful brands. Our best-in-class innovation was recognized at the end of the year, as we became the first Flavor house to receive the Nestlé Innovation Partnerships Award During the year, we began commercializing flavor solutions including a sucralose enhancer licensed from US-firm Senomyx and extended our partnership agreement with the firm to reinforce our position at the forefront of sweetness enhancers. We also continued to benefit from the strong demand for Natural, as part of the Health & Wellness trend. This was strengthened by the more recent desire for Authenticity. Our leadership in natural flavor ingredients, together with our expertise in natural raw materials, natural extraction processes and green chemistry, fuelled our success in these key areas. PERSPECTIVES In FY10, we confirmed our innovative strength and our ability to understand client and consumer desires across local and global markets. We will continue to leverage this as we move forward, offering solutions that enable clients and consumers to taste the difference.

PerFUMerY STRONG SALES REBOUND Perfumery posted a double-digit increase in local currency sales, with a strong performance in all three segments.

5 PerFUMerY STRONG SALES REBOUND Perfumery posted a double-digit increase in local currency sales, with a strong performance in all three segments. Fine Fragrance recorded robust results, driven by an impressive rebound during the second half of the year, as our clients drastically restocked in response to recovering consumer demand. Body and Home Care achieved similar growth. In Body Care, the sales progression was particularly strong in the deodorants, skin care and body perfume categories, while laundry detergents and soaps led in Home Care. This performance reinforced our lead position in these key categories. Geographically, the emerging markets of Eastern Europe, the Middle East and Africa posted the strongest performance. North America followed, reflecting a strong rebound after last year s recession. Asia Pacific and Latin America also posted double-digit growth, despite comparison with a strong performance last year. Western Europe saw a high single-digit sales increase, driven by the particularly strong recovery in Fine Fragrance. During the year, we began to fully leverage our natural ingredients center in the south of France. As one key perfumery client observed: «Firmenich has the strongest showing of naturals, feels very different from the traditional players and impresses by the differentiated technology they bring to the table. This was important recognition of our focus on highly innovative naturals, in particular for the Fine Fragrance market. We further developed our perfume delivery systems, which represent a key competitive advantage. They respond to our clients need for timely perfume release in a cross-section of products, helping to create the pleasures that distinguish winning brands. PERSPECTIVES We are well positioned to leverage our creative talent and exceptional innovation to defend and expand our share of the international fragrance market. CREATIVITY REWARDED Firmenich Fine Fragrances enjoyed a landslide of wins at the 2010 Fifi Awards, obtaining the largest harvest ever at the U.S. ceremony and unique recognition as a Fragrance house in two distinctive categories. This confirmed that we continue to offer clients worldwide the very best in fragrance creation.

6 Ingredients FOLLOWING THE RECOVERY TREND Ingredients sales posted high single-digit growth, following the trend of the global recovery. In perfume ingredients, we recorded significant growth both in the sale of our innovative specialty ingredients and our naturals, as Fine Fragrance rebounded strongly during the second half of the year. Flavor ingredients also posted a strong progression, reflecting increased demand in foods and beverages. At the same time, the global Ingredients market saw fierce competition, particularly from emerging markets. We continued to invest in the development of unique, high value-added ingredients that support our clients in creating strongly differentiated brands. At the same time, we pursued investments in new methods of producing existing materials. INNOVATION IS KEY In FY10, we began commercialization of a new sucralose enhancer that we have developed for the flavor market. This enabled us to develop flavor solutions that reduce the use of sugar in a variety of our clients food and beverage products, without compromising on taste. We also began production of high value-added perfumery ingredients at our new site in Gujarat Province, India. The plant integrated and began producing its first products at the end of the year, in a process that is due to continue as the plant gets up to speed. It will enable us to continue to respond to the growing demand of the global perfumery market. Finally, we completed the reorganization of our natural ingredients center in the south of France, which is fast becoming a symbol of our leadership in natural Fragrance and Flavor Ingredients. The site is a center of expertise focusing on research and development in the production of highly innovative and sustainable naturals, integrating sourcing, science and supply. PERSPECTIVES Firmenich will continue to focus on maintaining our 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.

RESEARCH & DEVELOPMENT Firmenich continued its above industry-average R&D investment, maintaining its advance in the many disciplines that help us create the unique pleasures of smell and taste for

7 RESEARCH & DEVELOPMENT Firmenich continued its above industry-average R&D investment, maintaining its advance in the many disciplines that help us create the unique pleasures of smell and taste for consumers around the globe. GATEWAY TO THE FUTURE During FY10, our R&D teams developed a methodology for screening raw materials for anti-plaque activity in the oral cavity and found a number of substances with anti-adhesive properties. Similarly, a study in collaboration with the Geneva Dental School demonstrated the ability of an antimicrobial flavor in a sugarless chewing gum to reduce bad breath. This research serves our continuous development of flavor solutions for oral care products with demonstrated hygiene claims. Similarly, we continued to explore solutions that support the consumer s growing aspiration for Health & Wellness. In particular, we pursued the development of flavor solutions with a new sucrose enhancer that will allow the reduction of sugar use in a number of applications, while continuing to offer a great taste experience. AT THE HEART OF SCIENTIFIC EXCELLENCE Overall, we filed 32 new patent applications in FY10. Seventeen were related to our perfumery business, while the rest were for flavor and food applications. We also acquired three exclusive patent licenses for new sweetness enhancers. We introduced four new perfume ingredients during the year. These included a prestige ingredient for Fine Fragrance and a new cascade fresh note for Beauty Care and Fine Fragrance. Three new flavor ingredients were introduced, including a new ingredient discovered in Japanese green tea, which has become a key ingredient for dairy tonalities. Several new natural ingredients were also integrated into our offering. Two were developed by our research center in China, working with our natural ingredients center in the south of France. One is a strong vanilla note, while the other is typical of the Japanese lime or Yuzu, with a sulfuric grapefruit note. We will continue to capitalize on our strengths, exploring the scientific frontiers of taste and smell to develop differentiated solutions for the fragrance and flavor market.

06 FIRMENICH INTERNATIONAL SA CORPORATE MANAGEMENT From left to right: Michel Bongi, Friedrich Busse, Antoine Gautier, Paul-Louis Gay, Robert Weinstein, Patrick Firmenich, Jean-Marc Mommer, Aldo Uva.

8 06 FIRMENICH INTERNATIONAL SA CORPORATE MANAGEMENT From left to right: Michel Bongi, Friedrich Busse, Antoine Gautier, Paul-Louis Gay, Robert Weinstein, Patrick Firmenich, Jean-Marc Mommer, Aldo Uva. BOARD OF DIRECTORS Mr. Vernon SANKEY Chairman Mr. Charles FIRMENICH Vice Chairman (until October 2009) Mr. Yves BOISDRON Vice Chairman (as of October 2009) Mr. Patrick FIRMENICH CEO Mr. Olivier BAZIL Mr. Antoine FIRMENICH (as of October 2009) Ms. Barbara KUX Mr. Gérald MEYER Mr. Edward S. MOERK Mr. André POMETTA SCRETARY TO THE BOARD Mr. Dominique GRAZ CORPORATE MANAGEMENT CHIEF EXECUTIVE OFFICER Mr. Patrick FIRMENICH CORPORATE VICE-PRESIDENTS Mr. Michel BONGI Fragrance Division Mr. Friedrich BUSSE Strategic Development Dr. Toni GAUTIER Research & Development Mr. Paul-Louis GAY Finance Mr. Jean-Marc MOMMER Human Resources Mr. Aldo UVA Flavor Division Dr. Robert WEINSTEIN Ingredients Division

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

FIRNEWS 2011 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