Symrise Ag · XETR:SY1
Symrise — Q1 2010 Earnings Presentation
20 slides from Symrise's earnings presentation, May 4, 2010
Slide 1: Presentation Q1 2010
PRESENTATION Q1 2010 May 4, 2010
Slide 2: Major Headlines – Successful Start into 2010
MAJOR HEADLINES – SUCCESSFUL START INTO 2010 Strong sales increase of 13% in LC; all regions and application areas are showing significant improvements versus the year-ago period Profitability improved strongly mainly due to operating leverage; EBITDA margin at 21.3 % Net income nearly doubled compa
Slide 3: Sales Development: Strong Start in Q1 2010
SALES DEVELOPMENT: STRONG START IN Q1 2010 in €m Sales growth Symrise Group 346.7 391.0 392.5 +12.8% + 13.2% Q1 2009 Q1 2010 Q1 2010 in LC Sales development Scent & Care Sales development Flavor & Nutrition 179.8 204.8 205.2 166.9 186.2 187.3 + 13.9% +14.1% + 11.6% + 12.3% Q1 2009 Q1 2010 Q1 2010 in
Slide 4: Top 10 Customers: Core Listings in F&N Show Strong Impact
TOP 10 CUSTOMERS: CORE LISTINGS IN F&N SHOW STRONG IMPACT 2010 growth with top 10 customers Comments > Group sales with top 10 customers in line with total Group sales growth 18.2% in LC > Top 10 customer sales account for 30% of Group sales Group sales growth 13.2% in LC > Top 10 customer sales str
Slide 5: Geographical Development Q1 2010: Growth in All Regions
GEOGRAPHICAL DEVELOPMENT Q1 2010: GROWTH IN ALL REGIONS Regional sales split Q1 2010 1 Comments North America Western > Excellent momentum and normalized (+12.7% in LC) Europe (+11.8% in LC) customer order patterns Asia / Mature > Double-digit growth in almost all regions markets 18% (+4.2% in LC) 4
Slide 6: EBITDA Margin: On Track with >20% in Both Divisions
EBITDA MARGIN: ON TRACK WITH > 20% IN BOTH DIVISIONS EBITDA and EBITDA margin Group Comments 16.9% 17.6% 21.3% > Operating leverage impact from 58.7 61.0 83.3 higher sales > Lower raw material prices in selected Q1 2009 Q1 2009 normalized 1 Q1 2010 areas > Favourable product mix EBITDA and EBITDA ma
Slide 7: Scent & Care: Operational Highlights in Q1 2010
SCENT & CARE: OPERATIONAL HIGHLIGHTS IN Q1 2010 Scent & Care > Award for Symrise Cosmetic research: SymSitive® wins the 2010 BSB innovation prize > Proven impact in clinical studies for sensitive skin BSB Innovation > Developed Price 2010 in close cooperation with our partners BRAIN and In-Cosmetics
Slide 8: Flavor & Nutrition Operational Highlights in Q1 2010
FLAVOR & NUTRITION OPERATIONAL HIGHLIGHTS IN Q1 2010 Flavor & Nutrition > Investment project in Russia on track: production start expected in 2nd half of 2010 > Start with powder blending capacities > Encouraging development of new business unit Consumer Health with active ingredients > Opening of n
Slide 9: Financials
FINANCIALS
Slide 10: Strong Growth in Q1 2010 with Good Conversion into Profitability
STRONG GROWTH IN Q1 2010 WITH GOOD CONVERSION INTO PROFITABILITY > Growth of 13.2% in LC (12.8% at AR) Sales 1,319.9 (€m) 1,274.5 346.7 391.0 > Divisional growth rates in LC: • F&N 12.3% Q1 2009 Q1 2010 • S&C 14.1% > EBITDA margin up from 16.9% to 21.3% EBITDA 262.5 (€m) 272.1 driven by strong gross
Slide 11: Minor Currency Effect on Sales in Q1 2010
MINOR CURRENCY EFFECT ON SALES IN Q1 2010 -4.7 3.6 -1.4 0.7 0.3 392.5 391.0 Sales USD CNY GBP MXN Others Sales adjusted reported Currency Rate Q1 2010 Rate Q1 2009 in % vs € USD 1,38 1,30 6,4 MXN 17,67 18,72 -5,6 BRR 2,49 3,01 -17,1 GBP 0,89 0,91 -2,2 CNY 9,45 8,89 6,3 JPY 125,56 121,69 3,2 PAGE 11
Slide 12: EBITDA Bridge: Strong Impact from Sales Recovery
EBITDA BRIDGE: STRONG IMPACT FROM SALES RECOVERY in € m 18.4 3.6 2.1 - 3.1 - 2.8 24.8 83.3 58.7 EBITDA Q1 2009 Sales Raw material Operating costs Acquisitions Currencies EBITDA Q1 2010 costs PAGE 12
Slide 13: Financial Expenses: Lower Non-Interest Finance Items
FINANCIAL EXPENSES LOWER NON-INTEREST FINANCE ITEMS Financial expenses Q1 2009 (€ m) Comments > Q1 2010: € 1.9 m exchange gain 1.0 9.8 € 0.9 m loss on swaps 1.2 9.4 8.8 € 1.0 m sum 8.2 > Q1 2009: € 2.6 m exchange gain € 1.4 m loss on swaps Q1 2009 Q1 2010 € 1.2 m sum P&L interest Non-interest financ
Slide 14: Earnings per Share Q1 2010: Almost Doubled YoY
EARNINGS PER SHARE Q1 2010: ALMOST DOUBLED YOY €m Q1 2009 Q1 2010 % Sales 346.7 391.0 13 Cost of sales 203.3 218.3 Gross profit 143.4 172.7 20 Operating cost 105.3 110.2 EBIT (profit from operations) 38.1 62.5 64 Financial Result 8.2 8.8 Profit before tax (PBT) 29.9 53.7 80 Effective tax @ 25% (30%)
Slide 15: Operating Cashflow Influenced by Increase in Working Capital
OPERATING CASHFLOW INFLUENCED BY INCREASE IN WORKING CAPITAL Comments €m Q1 2009 Q1 2010 Net income for the period 20.9 40.4 Income tax expenses > Strong business momentum 8.9 13.3 Net interest expenses 9.4 9.8 supported by consciously Sub-total 39.3 63.5 extended working capital Amortization and de
Slide 16: Outlook
OUTLOOK
Slide 17: Outlook 2010: Market Recovery Strengthens Confidence
OUTLOOK 2010: MARKET RECOVERY STRENGTHENS CONFIDENCE Back to reasonable growth F&F > Further normalization of stock-keeping and order patterns Industry > Improvement in luxury segments expected to continue in line with economic recovery > Raw materials costs 2010 overall remain on high level Strateg
Slide 18: Questions? Answers!
QUESTIONS? Q&A ANSWERS! INSPIRING ALWAYS MORE … PAGE 18 18
Slide 19: Symrise Investor Relations
SYMRISE INVESTOR RELATIONS PLEASE DO GET IN TOUCH WITH US: SYMRISE AG An der Welle 8 60322 Frankfurt, Germany Dr. Andrea Rolvering Vice President Investor Relations Tel.: +49 - (0)69 - 7593 - 7594 Fax: +49 - (0)5531 - 90 - 49994 [email protected] PAGE 19
Slide 20: Disclaimer
DISCLAIMER This document contains forward-looking statements, which are based on the current estimates and assumptions by the corporate management of Symrise AG. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticip