Symrise Ag · XETR:SY1
Symrise — Investor Presentation (July 2017)
36 slides from Symrise's investor presentation, July 2017
Slide 1: Diversifying Success. Successfully Diversifying.
DISCLAIMER: ”The following document contains protected and confidential information from Symrise and must be kept in confidence. This information may not be used by anyone who obtains it if Symrise has not granted written permission to do so.” Diversifying Success. Successfully Diversifying. Symrise
Slide 2: At a Glance
symrise & At a Glance
Slide 3: A Leader in Global Flavors & Fragrances
Symrise AG A Leader in Global Flavors & Fragrances 1st 2003 70 10,000 to produce nature-identical merger of Haarman & production sites raw materials vanillin in 1874 Reimer and Dragoco ~9,000 €2.9bn 6,000 275% employees sales in 2016 global, regional total shareholder return and local clients since
Slide 4: Industry: A Highly Attractive Niche
Industry A Highly Attractive Niche Industry tied to population growth and disposable income; little Megatrends driving organic growth. dependence on cyclical, economic trends. High market concentration – top 4 players with 60%. Global footprint key to meet local tastes & preferences. ‘Sweet spot’ in
Slide 5: Organizational Structure: A Highly Diversified Business
Organizational Structure A Highly Diversified Business Segment Scent & Care Flavor Nutrition 45% 35% 20% total sales (2016) total sales (2016) total sales (2016) Division Fragrance Cosmetic Ingredients Aroma Molecules Flavor Diana Application Fine Fragrance Actives Special F&F Beverages Food area Be
Slide 6: Global Footprint
Global Footprint Historically Strong Presence in Emerging Markets Sales by region 2016 North Asia/ 22% America Pacific 25% €732m €623m +28% yoy EAME +9% yoy €1,198m 12% +6% yoy 41% Latin America €350m +7% yoy 6
Slide 7: Financial Highlights
Financial Highlights Strong Performance in 2016 Sales EBITDA* €625m €2.9bn +9 % Net Income* Operating Cash Flow at reporting currency €266m €339m +8% organic EBITDA* Margin EPS* growth 21. 5 % €2.05 €0.85 +12% at reporting currency dividend *Normalized for acquisition and integration expenses for th
Slide 8: Track Record Since IPO
Track Record Since IPO Sustainable Growth At High Profitability Levels 22% EBITDA 21.3% 21.9%* 22.0% 21.5%* Margin in % 19.9% 21.1% 20.0% 19.5% 20.4% 19% 18.0% +9.6% CAGR 2007-16 Sales in m € 1,275 1,320 1,362 1,572 1,584 1,735 1,830 2,120 2,602 2,903 2007 2008 2009 2010 2011 2012 2013 2014 2015 201
Slide 9: Guidance: Financial Targets Unchanged
Guidance Financial Targets Unchanged 2017 2012- 2020 Substantially outperform the relevant market* 5-7% Sales growth Annual sales growth ~20% EBITDA margin 19-22% EBITDA margin *Which is expected to grow at a rate of above 3 % per year. 9
Slide 10: Investment Case: 'Sweet Spot' in The Value Chain
Investment Case ‘Sweet Spot’ in The Value Chain Resilient business model 1 Attractive niche industry geared towards defensive end-consumer markets Cross-divisional networking Strongly balanced portfolio 4 And research engine across all three segments 2 Across businesses, regions and customer groups
Slide 11: Delivering on Strategy 2020
Delivering on Strategy 2020 11
Slide 12: Proven Three Pillar Strategy Since 2009
Overview Proven Three Pillar Strategy Since 2009 Growth Growth in emerging markets Efficiency Optimization of raw material portfolio Portfolio ortfolio M&A Maximization of customer spectrum Backward integration Partnerships & collaborations Targeted innovations & investments Specific efficiency prog
Slide 13: Growth Driven By Global Megatrends
G E P S Growth Driven By Global Megatrends Changing consumer face Economic shifts New consumption Middle-class explosion patterns Rising labor & commodity costs Digital age Aging population Convenience is king! Emerging markets Social media driven consumption Urbanization Focus on health & wellness
Slide 14: Emerging Markets
G E P S Emerging Markets LatAm And Asia/Pacific Driving Global F&F Demand Market growth Selected international markets Share of Group sales CAGR 2015-2020 Symrise presence since In 2016 (in %) Nigeria 8.5% Columbia 2014 1999 Iran Thailand 2016 5.4% 6.5% China 1982 1986 Vietnam India 2007 1994 57 Mat
Slide 15: Investments: Targeted Capacity Expansion
G E P S Investments Targeted Capacity Expansion To Foster Organic Growth 2015 Cosmetic 2015 Expansion of spray 2017 ingredients – new drying capacities Expansion of cosmetic ingredients plant Holzminden Holzminden and menthol capacities USA 5.8% Capital expenditure as % of sales (2016) 2015 Expansio
Slide 16: Innovation Driven by Trends, Customers and Sustainability
G E P S Innovation Driven by Trends, Customers and Sustainability 6.4% Open innovation – Development of Timberol® 1,577 R&D R&D spent (malodour receptor blocker) with Bochum University employees (2016) Sugar reduction/ obesity – New solutions for sugar 48 new reduced and stevia-containing beverages
Slide 17: Efficiency: Continuously Improving Our Cost Base
G E P S Efficiency Continuously Improving Our Cost Base Increasing automatization of Strengthening cooperation Releasing sales & marketing fragrance compounding facilities* of perfumers worldwide efficiency gains New power plant in Holzminden Fragrance reorganization SymTrap® technology for waste an
Slide 18: Raw Material Basket
G E P S Raw Material Basket Managing Complexity for Our Clients 42% material ~10,000 Vanilla Citrus cost quota raw materials 70% naturals Onion Cinnamon & Ginger Banana 30% from backward Beet Root Pine Tree Fruits & Seeds integration 18
Slide 19: Portfolio: A Key Differentiator To Competitors
G E P S Portfolio A Key Differentiator To Competitors Traditional F&F: UV filters Beyond F&F: ‘Thinking Sharpening our Portfolio Beverages Cosmetic actives Outside the Box‘ Savory Probiotics — — Expanding fruit and vegetable Legacy business extract portfolio Sweet Aqua UV filters and cosmetic active
Slide 20: Cosmetic Ingredients: A R&D Leader
G E P S Cosmetic Ingredients A R&D Leader With 17 New Patents in 2016 Sensitive skin Air pollution and Even skin tone Product protection intensive sunlight and complexion and preservation Dragosantol® 100 SymUrban® SymWhite® 377 SymOcide® SymSitive® 1609 Dragosine® Extrapone® Tuber Magnatum GW Hydro
Slide 21: Fragrance & Sensory Ingredients
G E P S Fragrance & Sensory Ingredients Access to Renewable Feedstock — 2016 Acquisition of US-based Renessenz* — 100 new aroma molecules from renewable and sustainable raw materials (resins, CST and limes) — Oral Care Supplementing our product offer in lead compounds (carvone, anethole) — Forward i
Slide 22: Pet Food
G E P S Pet Food Humanization and Premiumization Driving Growth Pet Sens’ Innov (internal expert panel) — — Leadership Leading global market position Capacity expansion Additional capacities in a highly concentrated market (only listed in Colombia, Spain (new plants) and France manufacturer) (new sp
Slide 23: Cross-Divisional Networking
G E P S Cross-Divisional Networking Connecting Our Three Segments — Same consumers, often same customers, often same end products — Similar technology platforms Flavor Scent & Care — Often similar molecules/extracts — Regulation Nutrition 23
Slide 24: Sustainability: An Imperative For Our Clients and Us
G E P S Sustainability An Imperative For Our Clients… And Us Customer Client Symrise €966bn opportunity for brands that Ethical Consumerism make their sustainability Certification all natural credentials stand out Policies €2.5tn market for Non-GMO fewer ingredients Clean label sustainable goods Org
Slide 25: Sustainability: Our FISC Strategy
G E P S Sustainability Our FISC Strategy 2016 -2020 goals 2016 achievements Greenhouse gas emissions (Scope 1 +2) -4% p.a. -5.4% Footprint Chemical oxygen demand in waste water -4% p.a. -17.2% Sensitive waste volume -4% p.a. +0.9% Innovation Patents per year > 25 48 Share of main suppliers rated by
Slide 26: Backward Integration Example: Vanilla
G E P S Backward Integration Example: Vanilla On-site Engagement in Madagascar Since 2004 Vanilla Harvest Our local footprint In Madagascar Sambava/ Hand Sun Selection Extraction Benavony Harvest pollination drying by own staff on-site 150 Andapa Permanent Antalaha Symrise Supply Chain employees Dir
Slide 27: Financials
PF ser. symrise & Financials
Slide 28: Sales FY 2016
Sales FY 2016 Strong Organic Growth Across All Segments Group +8.0% -4.3% +11.6% +7.9% 207 -112 206 2,903 2,602 2015 Organic growth Portfolio FX 2016 Scent & Care 1,074 58 +5.4 % 208 +19.4 % -29 -2.7% 1,311 +22.1 % Flavor 980 95 +9.7 % -59 -6.1 % 1,016 +3.6 % Nutrition 548 53 +9.7 % -1 -0.3 % -23 -
Slide 29: EBITDA by Segments FY 2016
EBITDA by Segments FY 2016 Particularly Strong Profitability in Flavor & Nutrition Scent & Care Flavor Nutrition In €m (margin in % of sales) 21.5% 18.2% 19.7% 22.3% 23.0% 22.3% 23.2% 258 219 219 134 239 122 231 2015 2016 2016 N 2015 2016 2015 2016 +11.5 % +6.8 % +9.6 % — — — Margin reflects acquisi
Slide 30: Group P&L FY 2016
Group P&L FY 2016 Strong EBIT Growth Despite Higher D&A Short P&L Comments In € m 2015 2016 2016 N Var. % — Healthy margin despite dilution caused by Gross profit 1,112 1,186 1,196 +7.6 % Pinova Group. — Gross margin 42.7 % 40.8 % 41.2 % Raw material quota of 41.7 % vs 41.4 % (in 2015); natural raw
Slide 31: Group Q1 2017
Group Q1 2017 A Good Start Into 2017 Sales EBITDA & EBIT In € m In € m +5.3% +4.6% Q1 2016 Q1 2016 N Q1 2017 Change +1.3% -15.5 9.8 EBITDA 153.7 158.5 165.5 4.4% 39.1 -2.1% EBITDA-Margin 21.0% 21.7% 21.6% -2.1% EBIT 108.0 112.7 117.3 4.0% EBIT-Margin 14.8% 15.4% 15.3% 765.2 Comments 731.8 — Good org
Slide 32: Scent & Care Q1 2017
Scent & Care Q1 2017 Organic Growth Driven By Aroma Molecules Sales EBITDA In € m In € m Q1 2016 Q1 2016 N Q1 2017 Change +1.1% +2.5% -3.2% EBITDA 67.7 72.5 71.9 -0.8% 3.8 -23.6 8.8 EBITDA-Margin 19.7 21.0 21.6 -2.1% -6.9% Comments 344.3 333.2 — Good organic growth Positive sales dynamics coming fro
Slide 33: Flavor Q1 2017
Flavor Q1 2017 High Single-Digit Organic Growth Sales EBITDA In € m In € m +8.8% +8.0% Q1 2016 Q1 2017 Change 22.1 -2.1 EBITDA 54.4 56.9 4.7% -0.8% EBITDA-Margin 21.7 21.1 -2.1% Comments 270.2 — 250.2 EAME Double-digit growth driven by sweet and savory applications. — Asia/Pacific Good dynamics, par
Slide 34: Nutrition Q1 2017
Nutrition Q1 2017 On-Going Strong Performance In Pet Food Sales EBITDA In € m In € m +5.9% +2.3% +17.8% Q1 2016 Q1 2017 Change +9.6% 3.1 EBITDA 31.6 36.7 16.1% 8.1 13.2 EBITDA-Margin 23.0 22.7 -2.1% Comments 161.8 — 137.3 Pet Food Strongest growth coming from Latin America, particularly Argentina, M
Slide 35: Contact: Investor Relations
Contact Investor Relations Financial Calendar Contact – Mühlenfeldstraße 1 August 9, 2017 37603 Holzminden (Germany) H1 Results 2017 [email protected] – November 8, 2017 Q3 Results 2017 Tobias Erfurth Annika Stern Christian Haverkamp [email protected] [email protected] christian.haverka
Slide 36: Disclaimer
DISCLAIMER: ”The following document contains protected and confidential information from Symrise and must be kept in confidence. This information may not be used by anyone who obtains it if Symrise has not granted written permission to do so.”