Symrise AG · XETR:SY1
Symrise — H1 2019 Earnings Presentation
22 slides from Symrise's earnings presentation, Aug 8, 2019
Slide 1: Financial Results H1 2019
Financial Results H1 2019 Dr. Heinz-Jürgen Bertram (CEO), Olaf Klinger (CFO) – August 8, 2019
Slide 2: Agenda H1 2019 results
Agenda H1 2019 results — 1 Business development H1 2019 (Heinz-Jürgen Bertram, CEO) 2 Financials in detail (Olaf Klinger, CFO) 3 Outlook and long-term objectives (Heinz-Jürgen Bertram, CEO) — 2
Slide 3: Financial Highlights H1 2019
Financial Highlights H1 2019 Continued strong performance Sales Business Free Net debt / EBITDA(N)1 Cash Flow € 1,692m +7.4% 7.8% 1.8x +6.2% vs. 7.3 % H1 2018 Incl. provisions for Organic growth in Reporting pensions 2.7x currency EBITDA(N)1 margin Net income¹ Outlook 2019: Improved EBITDA(N)1 margi
Slide 4: Group H1 2019: Strong growth of 7.4%
Group H1 2019 Strong growth of 7.4 % Sales Comments In € m Organic growth of 6.2 % exceeds market growth (expected to 6.2% 1.2% 7.4% be 3-4 %) and within mid-term target range of 5-7 % -2.1% 18.7 — 98.2 Currently no portfolio effect: Closing of ADF/IDF acquisition expected for H2 2019 — 1,575.5 1,69
Slide 5: Scent & Care H1 2019
Scent & Care H1 2019 Continues dynamic development with growth rate of 7.8 % Sales Comments In € m Organic growth of 6.3 % 1.5% 7.8% — 6.3% Double-digit growth in Fragrances driven by Fine 10.0 41.6 Fragrances and Consumer Fragrances — Aroma Molecules and Cosmetic Ingredients are 660.1 711.7 growing
Slide 6: Flavor H1 2019
Flavor H1 2019 Records growth rate of 5.4 % despite high comparables Sales Comments In € m Organic growth of 3.7 % 3.7% 1.7% 5.4% — 10.2 High comparable growth figures, double digit from 22.4 previous year — Flavor achieved a double-digit growth in Asia/Pacific; 604.7 637.4 continued growth momentum
Slide 7: Nutrition H1 2019
Nutrition H1 2019 Strong momentum with growth rate of 10.5 % Sales Comments In € m Organic growth of 11.0 % 11.0% 10.5% -1.5 — Pet Food double-digit growth driven by all four regions -0.5% — 34.2 Limited organic growth in Food with positive momentum in Asia Pacific and Latin America 310.6 343.3 — Pr
Slide 8: Sales by region H1 2019
Sales by region H1 2019 Latin America and Asia/Pacific the strongest growth drivers By region By Markets In € m (organic growth in %) as % of Group sales North America 387 +5.0% EAME 724 56 Mature Markets +3.5% Asia/Pacific Latin 376 44 Emerging Markets America +13.3% +9.1% 206 +11.2 % organic growt
Slide 9: Agenda: Financials in detail
Agenda H1 2019 results — 2 Financials in detail (Olaf Klinger, CFO) — 9
Slide 10: EBITDA(N) H1 2019
EBITDA(N) H1 2019 Profitability at a good level with a margin of 20.8 % EBITDA(N)¹ Comments In € m Margin EBITDA(N) margin of 20.8% incl. IFRS 16 +€ 9.8m (+0.6 %) — 20.1% 19.7% 22.6% 19.5% 20.8% Increase in EBITDA due to strong sales growth in comparison to 4.6 increase of raw materials and manufact
Slide 11: Operating Result
Operating Result Strong earnings performance Short P&L Comments In € m H1 2019 Gross profit improved significantly by H1 2018 H1 2019 Change 9.7 % normalized1 — Gross profit 630.9 692.3 692.3 9.7 % Increase in depreciation due to new EBITDA 317.1 341.7 351.3 10.8 % accounting principle (€ 8.8m) and
Slide 12: Business Free Cash Flow
Business Free Cash Flow introduced as a new internal KPI for 2018 BFCF as % of Sales H1 Definition EBITDA FY – CAPEX +/ – Change in Working Capital 11.7% = Business Free Cash Flow 10.2% 9.9% 9.9% 9.8% Improvement in H1/19 vs H1/18 7.3% 7.8% despite higher working capital due to increased EBITDA and
Slide 13: Cash Flow
Cash Flow Working capital reflects high growth dynamic Cash Flow Analysis Comments In € m H1 2018 Operating cash flow declined by € H1 2019 10.3m, continuing increase in working 947 capital due to higher inventories, a reduction of trade payables this year after an increase last year and higher inco
Slide 14: Balance Sheet
Balance Sheet Healthy financial structure with equity ratio of 37.8 % Balance Sheet Comments In € m 6,143 Cash, borrowings and equity 6,143 significantly impacted by financing activities 1,283 for ADF/IDF acquisition and refinancing of 4,920 4,920 2,360 Borrowings Cash & equiv. 280 bond 671 Trade re
Slide 15: Solid Financing Structure
Solid Financing Structure Clear focus on investment grade Maturity profile as of June 30, 2019 (in € m) Net debt / EBITDA(N) Net debt + provisions & pension/EBITDA(N) ratio Net debt/EBITDA(N) ratio 3,5 3,0 2,5 2,0 Pinova 1,5 Diana Step changes 1,0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 16: Agenda: Outlook and long-term objectives
Agenda H1 2019 results — 3 Outlook and long-term objectives (Heinz-Jürgen Bertram, CEO) — 16
Slide 17: Operational Highlights H1
Operational Highlights H1 Strategy execution to achieve objectives 2019 Growth Efficiency Portfolio Menthol: ramp up of new plant in the Cosmetic Ingredients: opening of Acquisition ADF/IDF: US, start of production in Q3 new development center in Holzminden US-based provider of natural protein — — s
Slide 18: Outlook specified for 2019
Outlook specified for 2019 Normalized EBITDA margin of around 21 % Targets 2019 Growth dynamics — Organic growth Strategically well-positioned, sustainable growth opportunities through differentiated portfolio 5-7% — Added competencies through integration of ADF/IDF CAGR — Industry-leading backward
Slide 19: 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 20: Long-term growth objective confirmed
Long-term growth objective confirmed Doubling sales by 2025 Long-term objectives 2025 Efficient set up, global In € bn presence and strong portfolio support business performance in mid-term until 2022 as well as in long-term 2025 € 5.5 – 6.0 bn € 4.0 – 4.5 bn € 3.0 bn Organic growth € 1.3 bn Increme
Slide 21: Financial calendar & contact
Symrise AG Financial calendar & contact Financial Calendar Contact Symrise AG October 29, 2019 Mühlenfeldstraße 1 9M 2019 trading statement 37603 Holzminden, Germany Tobias Erfurth Investor Relations [email protected] Bernhard Kott Corporate Communications [email protected] This doc
Slide 22: Appendix: Financing structure acquisition ADF/IDF
Appendix: Financing structure acquisition ADF/IDF All facilities completed Bridge and Term Facilities Agreement € 800m / 31 Jan 2019 Facility A Facility B Facility C Bridge to Equity* Bridge to Debt Term Loan € 400m € 250m € 200m Accelerated Book building ‘Schuldschein’ (promissory loan) Syndication