VON32629798

1/10 Vontobel Research / 14-10-26

– What's new? – GIVAUDAN (Buy, 4,500 (NEW)): Extrait-ordinary - Fragrances continue to defy gravity - Taste makes step in right direction - Buy confirmed with a new price target of CHF 4,500 (4,100)

– BOSSARD (Buy, 250): Beat and raise 3Q26 results - Very strong organic growth driven by Asia - Continued momentum in Europe broadening across verticals - Lifted FY26 guidance and mid-term targets confirmed

– GALDERMA (Buy, 200): Galderma Signs Agreement to Acquire ZO Skin Health, Strengthening Its Physician-Dispensed Skincare Offering; PT CHF 200, Buy

– Good to know – SWISSCOM (Hold, 630): Court ruling enables cheaper fiber deployment in Switzerland - Could reduce Swisscom's Swiss Capex envelope materially. Hold

– LONZA (Buy, 655): 3Q26 qualitative update and Capital Market Day - company on track - FY26 outlook confirmed - mid-term outlook upgraded

– SONOVA (Hold, 220): EUHA hearing aid conference with new product launches, building on the EON hearing aid platform - Hold, PT CHF 220

© 2026 Vontobel Equity Research. The objectivity of this report may be compromised by existing or planned business relationships between the producer and the analyzed company and potential conflicts of interest arising thereof. Investors should therefore on no account use this report as the sole basis on which to make a decision. Please see the end of the document for more details on potential conflicts of interest and disclaimer information.

2/10 / Equity Morning Note / 14-10-26 Vontobel

WHAT'S NEW? Extrait-ordinary - Fragrances continue to defy gravity - Taste makes step in right direction - Buy confirmed with a GIVAUDAN new price target of CHF 4,500 (4,100) Analyst: Bloomberg: GIVN SE Price: CHF 3,817 FACTS & COMMENT: Enterprise value (mns) CHF 39,099 Market cap (mns) CHF 35,217 Outstanding momentum: Givaudan smashed expectations in 3Q26 with Reporting Currency CHF 8.6% org. growth, based on exceptional Fragrance & Beauty at 13.5% (with perfumery at 30%+) and recovering Taste & Wellbeing at 3.5%. We expect Buy PT: CHF 4,500 (NEW) the dynamic to remain positive over the coming quarters and thus increase our growth estimate mainly for FY26 (to 5.9% org. from 4.4%) and slightly for FY27 (4.7% from 4.6%) on this higher base. The FX environment has turned into a tailwind such that our top-line estimates are around 2% higher in CHF. Income Stat. (mns) 2025A 2026E 2027E 2028E Revenues Margin support: The clearly higher volume growth and further mix EBITDA improvement (fine fragrances) should provide meaningful support for EBIT margins. However, the consumer environment remains fragile and input costs Net profit Growth (%) 2025A 2026E 2027E 2028E volatile with an inflationary trend. We thus increase our adj. EBITDA margin Revenues 0.8 4.7 5.3 3.2 estimates only moderately to 24.4% in FY26 from 24.1% and 24.1% in FY27 Net profit - from 23.7%. This should also support FCF generation in FY26 where we now EPS (rep.) - expect 10.7% of sales with a catch-up in FY27. Together with a slightly lower Margin analysis (%) 2025A 2026E 2027E 2028E risk assessment this drives our new price target of CHF 4,500 (4,100). Gross margin EBITDA margin EBIT margin OUR CONCLUSION: Balance sheet (%) 2025A 2026E 2027E 2028E NWC/Revenues Givaudan's 3Q26 results underline the resilience of its business model and Net debt (mns) the strength of its market position. In Fragrance & Beauty, where Givaudan Equity to tot. assets remains the clear market leader, we believe peers will find it difficult to match Gearing Net debt/EBITDA 2.1 2.1 1.7 1.4 the recent performance. We are also encouraged by the gradual underlying CF statement (mns) 2025A 2026E 2027E 2028E progress in Taste & Wellbeing, which should become more visible as the Capex - division laps a volatile base and one-off US tariff-refund effects. Buy Operating FCF confirmed; new PT CHF 4,500 (4,100). Inc(+)/Dec(-) in cash CF analysis (%) 2025A 2026E 2027E 2028E Op. CF margin Capex/Revenues 4.0 4.4 4.3 4.3 Capex/Depreciation Per-share data (CHF) 2025A 2026E 2027E 2028E EPS (rep.) EPS (adj.) Net cash - Dividend Payout ratio (%) Valuation (X) 2025A 2026E 2027E 2028E P/E P/E (adj.) P/B EV/EBITDA FCF yield…