Symrise AG · XETR:SY1
Symrise — FY2019 Earnings Presentation
36 slides from Symrise's earnings presentation, Mar 10, 2020
Slide 1: Results for the Financial Year 2019
Results Resultsfor forthe the Financial FinancialYear Year2018 2019 Dr Heinz-Jürgen Bertram (CEO), Olaf Klinger (CFO) – Frankfurt, 10 March 2020
Slide 2: Agenda
Agenda Overview — 1 2019 at a Glance 2 Financials 2019 3 Strategic Initiatives / Outlook — 2
Slide 3: 2019 at a Glance
2019 at a Glance FY 2019
Slide 4: Financial highlights FY 2019
Financial highlights FY 2019 Symrise continues profitable growth Sales Business Free Cash Flow2 Dividend proposal €3.408bn €476m 95 € cents + 8.0 % in reporting currency 14.1 % of sales per share + 5.7 % organic growth + 53 % vs. last year EBITDA(N)1 margin Net income1 Investments 20.8% €304m €182m
Slide 5: Sales 2019
Sales 2019 Continued accelerated growth Symrise Group Comments In €m (sales growth in %) 3,408 +5.7 % organic sales growth 3,154 Driven by all segments and regions +5.7 % organic growth — +8.0 % sales growth in reporting currency Good capacity utilization and strong demand — ADF/IDF with good start,
Slide 6: Sales by segment in 2019
Sales by segment in 2019 Growth across all segments in €m/organic growth in % Scent & Care 1,324 2018 1,419 2019 +5.6% +7.2% reported Double-digit growth with Fine Fragrances, high demand in EAME and Latin America. Good momentum with Cosmetic Ingredients and Aroma Molecules. Flavor 1,191 2018 1,257
Slide 7: Sales by region in 2019
Sales by region in 2019 Dynamic growth in Emerging Markets By region Sales by region organic growth in % 2019 €758m €809m North America EAME 22% 24% +4.2% +3.6% Asia Pacific +7.4% 12% 42% Latin America +12.8% €1,430m €411m NA LatAm EAME APAC 7
Slide 8: Sales and EBITDA
Sales and EBITDA Outstanding track record Development of sales / EBITDA Sales and EBITDA in €m, margin in % 23% EBITDA margin 20% 19.8 21.3 19.9 18.0 21.1 20.0 19.5 20.4 21.9 22.0 21.5 21.0 20.0 20.8 CAGR 06-19 8.2% Sales 1,229 1,275 1,320 1,362 1,572 1,584 1,735 1,830 2,120 2,602 2,903 2,996 3,154
Slide 9: Share price performance +42% in 2019
Share price performance +42 % in 2019 Very attractive dividend and long-term value creation Dividend 2007 – 2019 Comments Per share in € cents 80 85 88 90 95 65 70 75 Continued positive share price 60 62 50 50 50 development; exceeding German DAX and MDAX +42 % in 2019 Share price 2007 – 2019 — Sym
Slide 10: Financials 2019
2 Financials 2019 10
Slide 11: Group 2019
Group 2019 Another year of strong organic growth Sales development Comments In €m 5.7% 1.0% 1.3% 8.0% Strong organic growth of 5.7% driven by good demand and 179.3 32.0 42.6 good capacity utilization in all segments and regions. — Portfolio effect from ADF/IDF with sales of €32m. 3,154.0 3,407.9 — P
Slide 12: Group 2019
Group 2019 Profitability growing faster than top-line In €m 2018 2019 20191 Var. % Comments normalized Sales 3,154 3,408 3,408 8.0 Gross profit increase of 10 % mainly due to under proportional Gross profit 1,241 1,367 1,367 10.1 raw material price increases. Gross margin increase from 39.4% to 40.1
Slide 13: Scent & Care 2019
Scent & Care 2019 Strong sales growth on good margin level Sales development Short P&L In €m In €m 2018 2019 Var. % Sales 1,324 1,419 7.2 5.6% 1.5% 7.2% EBITDA 254 278 9.3 74.8 20.2 EBITDA margin 19.2% 19.6% EBIT 192 203 6.0 1,324.1 1,419.1 Comments Dynamic business momentum in Fragrances, with doub
Slide 14: Flavor 2019
Flavor 2019 Profitability increased at a high level Sales development Short P&L In €m In €m 2018 2019 Var. % 3.8% 1.8% 5.6% Sales 1,191 1,257 5.6 21.4 EBITDA 244 269 10.1 44.8 EBITDA margin 20.5% 21.4% EBIT 193 209 8.4 1,191.1 1,257.3 Comments Slower growth compared to 2018 due to limited price incr
Slide 15: Nutrition 2019
Nutrition 2019 Strong growth in Pet Food Sales development Short P&L In €m In €m 2018 2019 20191 Var. % Sales 639 732 732 14.5 5.0% 0.1% 14.5% 9.3% EBITDA 132 144 161 21.5 32.0 0.9 EBITDA margin 20.7% 19.7% 22.0% 59.7 EBIT 49 52 68 38.2 731.5 Comments 638.8 Very strong dynamics in Pet Food mainly in
Slide 16: EPS New record level of €2.25
EPS New record level of €2.25 In €m 2018 2019 2019 1 Var. % Comments Normalized EBIT 434 464 481 10.7 Normalized Financial result excludes a positive USD hedge effect of €10m for ADF/IDF acquisition. Financial result -45 -46 -56 24.0 — Normalized Income tax rate decreased to 27.1% (28.1%) mainly due
Slide 17: Business Free Cash Flow (BFCF)
Business Free Cash Flow (BFCF) Strong cash delivery compared to 2018 BFCF as % of Sales BFCF increased by 53% to €476m 16.4% = 14.1% of sales 14.1% 13.3% 12.5% 9.9% 11.8% 9.9% 9.9% Strong EBITDA growth Working Capital growth below top-line growth 2012 2013 2014 2015 2016 2017 2018 2019 CAPEX 5.3% of
Slide 18: Balance sheet
Balance sheet Solid financial position with equity ratio of 41.4 % Assets Equity and Liabilities Comments In €m In €m 5,957 5,957 446 332 Increase in Intangibles & PPE mostly Trade payables driven by ADF/IDF transaction. 4,920 648 4,920 — Cash & equiv. 280 316 889 1,966 Borrowings Borrowings: New Pr
Slide 19: Net debt development
Net debt development Covenant in long-term target range Net debt / EBITDA(N) Status Quo ADF/IDF + · Net debt² of €1,617m reflects Pinova acquisition & sale capital increase 2.3 x EBITDA(N) 3,5 Diana + capital increase · Net debt² including pensions and similar 3,0 obligation of € 2,222m reflects 3.1
Slide 20: Strategic initiatives / Outlook
3 Strategic initiatives FY Outlook 2019 20
Slide 21: Corporate strategy will continue
Corporate strategy will continue individual levers specified for 2020 Strategic priorities 2020 Vision Vision Growth Continue commercialization of broad customer base. Growth Efficiency Portfolio Fully exploit incremental growth initiatives. · Maximization of · Improvement of · Portfolio expansion c
Slide 22: Pillar Growth
Pillar Growth Exploiting full potential of customer and markets Symrise’s 12 largest customers Sales distribution Sales distribution Distribution by Division / Application by Segment by Region Cust. Flavor Diana Diana Pet Fragrance Oral Care Cosmetic Aroma 12% 21% Food Food Ingredients Molecules EAM
Slide 23: Pillar Efficiency
Pillar Efficiency Focus on sustainable processes and raw material access Cost of raw materials Expand cross-divisional purchasing projects optimization Formula efficiency Simplify formulas, reduce the number of raw materials Process Sampling Reduce number of samples without win rate measurements Two
Slide 24: Pillar Portfolio
Pillar Portfolio Innovation through networking of competencies We have successfully expanded our competencies over the past five years. We generate more than one third of our sales outside the traditional Our focus is on F&F business. Symrise Application leveraging growth We have leading positions i
Slide 25: Symrise remains clear sustainability leader
Symrise remains clear sustainability leader Climate protection and biodiversity key focus areas Climate protection Backward integration in natural raw materials — Climate positive from 2030 onwards with strong focus on biodiversity and social support for local communities — Science-based target: red
Slide 26: Investments and growth initiatives
Investments and growth initiatives Capacity expansion and innovation driving growth Growth initiatives Expenditure Scent & Care Flavor Nutrition In €m Menthol Meat alternatives Pet Food USA – expanded production Taste for alternative proteins, Colombia - new production site, 2019 182 capacity (2019)
Slide 27: Alternative proteins
Alternative proteins Princess and the Pea – an innovative beverage concept First alternative milk drink – launched by Symrise subsidiary Drinkstar Five flavors — Plant protein content comparable to classical milk drinks — Vegan, sugar-free, rich in protein and calcium 27
Slide 28: Outlook 2020
Outlook 2020 Confident to achieve targets Targets 2020 Growth dynamics Growth faster than the Organic growth Added competencies and further diversified product relevant market €m portfolio through acquisition of ADF/IDF. Grow th +5-7% — 3,408 Launch of new product solution and capacity 3-4% expansio
Slide 29: Objectives 2025
Objectives 2025 supported by our proven strategy Financial goals until 2020 until 2025 Sales growth 5 – 7 % pa (CAGR) 5 – 7 % pa (CAGR) Sales in Emerging Markets > 50 % > 50 % Customer mix 1/3 global, regional, local 1/3 global, regional, local EBITDA margin 19 – 22 % 20 – 23 % due to more favorable
Slide 30: Symrise Supervisory Board
Symrise Supervisory Board two highly experienced candidates for election at AGM in May Michael König (56) Peter Vanacker (54) Appointed by District court to the Board effective 15 Nominated for the Supervisory Board, 4 March 2020 January 2020. He will stand for election at AGM, 6 May 2020 He will be
Slide 31: Symrise AG
Symrise AG Financial Calendar 2020 Contacts 28 April Symrise AG Q1 2020 trading statement Mühlenfeldstraße 1 37603 Holzminden, Germany 06 May Annual General Meeting Tobias Erfurth Investor Relations 06 August [email protected] H1 2020 results Bernhard Kott 29 October Corporate Communication
Slide 32: Back up
symrise & Back up
Slide 33: Long-term growth objective 2025
Long-term growth objective 2025 Doubling sales Long-term objectives 2025 Comments In €bn — Efficient set up, global presence and strong portfolio € 5.5 – 6.0 bn support business performance in mid-term until 2022 as well as in long-term 2025 € 4.0 – 4.5 bn € 3.0 bn Organic growth € 1.3 bn Incrementa
Slide 34: Q4 2019 Group and S&C
Q4 2019 Group and S&C Group Scent & Care In €m In €m 5.2% 4.1% 1.7% 11.1% 32.0 13.4 1.6% 7.4% 40.1 5.9% 5.1 19.1 771.5 856.9 325.4 349.6 Q4 2018 Organic Portfolio FX Q4 2019 Q4 2018 Organic Portfolio FX Q4 2019 growth growth 34
Slide 35: Q4 2019 Flavor and Nutrition
Q4 2018 Flavor and Nutrition Flavor Nutrition In €m In €m 3.1% 1.7% 4.7% 8.5 4.7 19.1% 2.2% 28.7% 7.4% 3.7 12.4 32.0 278.6 291.8 215.5 167.4 Q4 2018 Organic Portfolio FX Q4 2019 Q4 2018 Organic Portfolio FX Q4 2019 growth growth 35
Slide 36: Maturity profile
Maturity profile Balanced maturity profile with low refinancing risks Maturity Profile In €m 78 40 16 40 40 40 161 500 400 152 300 262 154 7 40 80 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 EIB 2013 US Private Revolver 2015 Bond 2019 Promissory Loan Convertible Promissory Loan Term Loan 2019