Symrise : Analyst Presentation

Financial Results

H1 2020

Dr. Heinz-Jürgen Bertram (CEO), Olaf Klinger (CFO) - Holzminden, August 6, 2020

Agenda

Results H1 2020

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1. Business development H1 2020 (Heinz-JürgenBertram, CEO)
2. Financials in detail (Olaf Klinger, CFO)
3. Outlook and long-term objectives (Heinz-JürgenBertram, CEO)
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1 Business development H1 2020

Heinz-Jürgen Bertram, CEO

3

Financial Highlights H1 2020

Sustained highly profitable growth despite global Corona crisis

	Sales		Business Free Cash Flow2
	€1.821bn		€190m
+ 7.6 % reported incl. ADF/IDF		+ 37.3 % vs. last year
+ 3.4 % organic growth
	EBITDA margin		Net income3
21.6%			€169m
	EBITDA +11.9 %1 to €393m
		Earnings per share4 € 1.25

Net Debt / EBITDA(N) 5

2.2x

incl. provisions for pensions and similar obligations 3.0x

Corona pandemic

Strong measures in place

Fully operational globally.

Shift in portfolio towards nutrition, hygiene and care.

1	H1 2019 normalized for transaction and integration costs ADF/IDF	4 undiluted	4
2	Business Free Cash Flow = EBITDA(N) - Investments+/- changes inWorking Capital	5 Annualized EBITDA(N)

3 Attributable to shareholders of Symrise AG

Sales H1 2020

Solid sales performance despite challenging market environment

Symrise Group

In €m (sales growth in %)

1,692	1,821
+€ 106m ADF/IDF
	+3.4 % organic growth
2019	2020
+7.6%

Comments

+3.4% organic sales growth

Driven by Nutrition and

Scent & Care

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+7.6 % sales growth in reporting currency Reflecting +€ 106m ADF/IDF contribution and headwinds from currencies

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Overall strong growth

But demand driven shift in our sales portfolio

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Sales by segment in H1 2020

Nutrition has been strongest growth driver

in €m/organic growth in %		+2.6%
712	711
H1 2019	H1 2020	-0.1% reported

Scent & Care

Strong demand in Consumer Fragrance and Oral Care. Fine Fragrances and Sun Protection affected by lockdowns and travel restrictions. Add. Menthol capacity sold

		+0.6%	Flavor
637	636	Shift from Out-of-home to At-home
consumption leading to growth in Savory,
but lower demand in Beverages and
H1 2019	H1 2020	-0.2% reported	Confectionary
		+10.5%
		Nutrition
343	474	Continued double digit growth in Pet Food
driven by increased global demand.
H1 2019	H1 2020	+38.1% reported	ADF/IDF above expectations

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Shift in portfolio due to Corona crisis

The resilience of our business is based on our wide range of applications

Certain application areas suffer from lockdowns and travel restrictions, other benefit from changed consumer habits. Due to our diversifies portfolio, we will continue to grow above market

Flavor

Flavor

Bev erages

Lower demand due to Corona lockdowns

Sweet

Slightly lower demand

Sav ory

High demand due to increased cooking at home

Nutrition

Diana	ADF/IDF		Probi*
Pet Food		Probiotics
Continued high		Moderate
demand, double		growth
digit growth		momentum

Food Increasing demand due to cooking at home

Aqua Moderate growth

ADF/IDF

Growth above plan

Scent & Care

Fragrance

Fine Fragrances

Decreasing demand due to Corona lockdowns

Consumer

Fragrances

Increased demand of care and hygiene products

Oral Care

Excellent double digit growth

Cosmetic

Ingredients

Activ e

Ingredients

Stable business environment

Sun Protection

Lower demand due to travel restrictions

Botanicals

Stable environment

Colors

Stable business environment

Aroma

Molecules

Fragrance

Ingredients

Lower demand due to less activities in FF

Menthol

Double digit growth due to additional capacities & high demand of hygiene products

* Symrise holds a majority stake in the Swedish company Probi AB

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2 Financials in detail

Olaf Klinger, CFO

8

Group H1 2020

Continued solid organic growth

Sales development				Comments
In €m
	3.4%	6.3%	-35.4	7.6%	Solid organic growth of 3.4% in H1 with 4.6% in Q2 driven
	58.3	105.9	-2.1%		by strong demand of Pet Food, Consumer Fragrance, Oral Care
				and Savory.
					-
1,692.3		1,821.2	Portfolio effect from ADF/IDF with sales of €106m.
					-
					Negative currency effect of €35m mainly driven by weakening
					of LATAM currencies.
H1 2019	Organic	Portfolio	FX	H1 2020
	growth

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Group H1 2020

Profitability exceeding top-line growth

In €m	H1 2019	H1 20191	H1 2020	Var. %		Comments
normalized
Sales	1,692.3	1,692.3	1,821.2	7.6
						Gross profit increase of 5,5 % mainly due to contribution of
Gross profit	692.3	692.3	730.1	5.5		ADF/IDF. Gross margin decrease from 40.9% to 40.1% due to
						proportional higher manufacturing costs from ADF/IDF.
EBITDA	341.7	351.3	393.1	11.9		-
	EBITDA increased by €42m to a 21.6% margin, reflecting
EBITDA margin in %	20.2	20.8	21.6			also lower operational expenses.
		-
Depreciation	59.4	59.4	67.6	13.8		Higher D&A driven by last years investments and first-time
	consolidation of ADF/IDF. D&A impact of € 9m for ADF/IDF after
Amortization	50.7	50.7	59.7	17.7		preliminary finalization of PPA.
	-
EBIT	231.6	241.2	265.8	10.2		EBIT increase of €25m (+10%) underlines the profitable
	growth.
EBIT margin in %	13.7	14.3	14.6

1 Adjusted for transaction and integration costs related to business combinations

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Scent & Care H1 2020

Stable sales with shift in demand towards Consumer Fragrances

Sales development				Short P&L
In €m				In €m
					H1 2019	H1 2020	Var. %
	-19.0			EBITDA	140.2	146.1	4.2
2.6%	-0.1%		EBITDA margin	19.7%	20.6%
18.2	-2.7%			EBIT	104.3	106.9	2.4
				EBIT margin	14.7%	15.0%

711.7		710.9		Comments
					Dynamic business momentum in Consumer Fragrances and Oral
					Care with double-digit growth, Fine Fragrances and Cosmetic
					Ingredients affected by lockdowns and travel restrictions.
H1 2019	Organic	Portfolio	FX	H1 2020	Aroma Molecules slightly below PY after high comparable, but strong
menthol sales after capacity expansion.

growth	-
	EBITDA up to 20.6 % mainly due to strict control of operating expenses.

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Flavor H1 2020

Portfolio shift towards products for increased at-homeconsumption

Sales development							Short P&L
In €m							In €m
											H1 2019	H1 2020	Var. %
0.6%	-4.9	-0.2%			EBITDA	144.3	147.5	2.2
										EBITDA margin	22.6%	23.2%
	3.9	-0.8%
			EBIT	115.6	117.2	1.4
										EBIT margin	18.1%	18.4%
637.4						636.4			Comments
										Reduced demand in Beverages and Confectionary partly offset by
										increased sales for savory, bakery products and cereals.
										-
	H1 2019 Organic Portfolio		FX	H1 2020	EAME and Northern America on last years level; South East Asia
	growth							and China back on growth path.
										-

EBITDA increased to 23.2 % due strict cost discipline.

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Nutrition H1 2020

Ongoing strong dynamics in Pet Food

	Sales development								Short P&L
	In €m									In €m
											H1 2019	H1 20191	H1 2020	Var. %
			30.9%	-11.5	38.1%			EBITDA	57.2	66.8	99.6	49.1
					EBITDA margin	16.7%	19.5%	21.0%
		10.5%		-3.4%
						EBIT	11.6	21.3	41.7	96.0
		36.2	105.9							EBIT margin	3.4%	6.2%	8.8%
					473.9			Comments
343.3
										Very strong performance from Pet Food with double-digit growth in all
										regions; Food with good development in Asia/Pacific.
										-
	H1 2019	Organic	Portfolio		FX	H1 2020		Integration and sales of ADF/IDF above expectations.
		growth								-
										Profitability increased by 150 bps.

1 Adjusted for transaction and integration costs related to business combinations

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Earnings Per Share H1 2020

New record high of €1.25

	In €m	H1 2019	H1 2019	H1 2020	Var. %		Comments
	normalized1
	EBIT	231.6	241.2	265.8	10.2		Financial result stable, despite high volatility of key currencies
							and ADF/IDF acquisition.
	Financial result	-27.8	-27.3	-29.0	6.1		-
							Stable income tax rate at 27.0%.
	EBT	203.8	213.9	236.9	10.7		-
		EPS2 at new record level of €1.25 mainly as a result of increased
							operating profit .
		-55.1		-64.0
	Income tax	-57.9	16.2		-
	(27.0%)	(27.0%)		In July, additional Eurobond of € 500m until 2027 was
	Net income2	146.0	153.4	169.2	10.3		successfully placed in the market to refinance existing debts due in
		Q4 2020.
	EPS3 in €	1.09	1.14	1.25	9.6
1 Adjusted for transaction and integration costs; including IFRS 16 effect	2Attributable to shareholders of Symrise AG	14

3Undiluted

Business Free Cash Flow (BFCF)

Continued strong cash delivery

	BFCF as % of Sales					14.1%
11.7%
10.2%	9.9%	9.9%			10.5%
		9.9%	7.3%	7.8%
2016	2017	2018	2019	2020
	Definition of BFCF:					H1		FY
			EBITDA
			minus	CAPEX
			minus/plus	Change in Working Capital
		=	Business Free Cash Flow

BFCF H1 20201 increased by 37% to €190m

= 10.5% of sales

Strong EBITDA growth

Working Capital increase below topline

growth

CAPEX 3.1% of sales (€57m) after

4.6% (€78m) in H1 2019 with different phasing

Ambition 2020

BFCF around 14% of sales

1 Including IFRS 16 effect

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Balance Sheet

Solid financial position with equity ratio of 41.2 %

Assets										Equity and Liabilities			Comments
In €m										In €m
	5,953	5,885			5,953	5,885				Reduced cash position due to paid dividend
Cash & equiv.			446			361						333			324		Trade payables		in Q2 and payback of current financial
Trade receivables			648			699													liabilities.
																-
																	Borrowings
Inventories			892			924						1,966			1,905		Trade receivables and Inventories
																increased due to current business environment
																	Pensions		-
												605			616			Borrowings: Decrease by €61m mainly due to
												425			454		Other		reduction of short-term debts.
Intangibles			3,632			3,544					167			160		Deferred tax		-
& PPE														liabilities		Pension provisions largely unchanged -
												2,457			2,426	Equity		German interest rates stable at 1.2%.
															-
																			Purchase Price Allocation for ADF/IDF
Other			335			357													was in Q2 2020 preliminary.
	FY 20199 1	H1 2020			FY 20199 1	H1 2020

1FY 2019 restated for finalized ADF/IDF based on preliminary Purchase Price Allocation

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Net Debt Development

Covenant in long-term target range

Net debt / EBITDA(N)1

	Pinova	ADF/IDF +
	capital increase
	acquisition & sale
3,5
Diana + capital
3,0	increase

2,5

2,0

1,5

1,0

2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
												H1
Net debt (incl. provisions for pension and			Net debt/EBITDA(N) ratio
similar obligations) /EBITDA(N) ratio

Status Quo

• Net debt² of €1,645m reflects

2.2 x EBITDA(N)

• Net debt² including pensions and similar obligation of € 2,261m reflects
  3.0 x EBITDA(N)

Ambition

• Long-termtarget of 2.0 to
  2.5 x EBITDA (incl. pensions)
• Unchanged since IPO
• Top priority: Remain an investment grade profile

1 2019 adjusted for transaction and integration costs related to business combinations	17
2 Incl. lease obligations

3 Outlook and long-term objectives

Heinz-Jürgen Bertram

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Updated outlook 2020

Increased profitability target with an EBITDA margin of 21-22 %

Targets 2020		Impact of Corona crisis well managed

Outperform growth of the relevant market

Grow th

3-4%

Organic growth

€m

3,408
2019	2020

 Symrise has put measures in place at all locations to

provide employees and partners with optimal protection

against the virus.

 We continue to be fully operational and are making every

effort to supply our customers with the usual reliability.

 The crisis underscores the resilience and balance of our

Profitability	Business Free
EBITDA margin	Cash Flow (% of sales)
21-22%	14%
	~

business model.

 With our broad range of product solutions for food and

beverages, personal care and hygiene, we serve the needs of

everyday life, specially in these times the needs of everyday

life.

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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 portfolio mix
	CAPEX	5 - 6 %	4 - 5 % by 2022 most of the major invests completed
	Dividend	30 - 50 %	30 - 50 % planned to be continued
	Sustainability goal
	Environment	33 %	improvement of footprint	50 %* improvement of footprint

*Science-based target (SBT) 2016-2025

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Symrise AG

Financial Calendar 2020		Contacts
29 October		Symrise AG
9M 2020 trading statement		Mühlenfeldstraße 1
		37603 Holzminden, Germany
		Tobias Erfurth
		Investor Relations
		[e-mail]
		Bernhard Kott
		Corporate Communications and Sustainability
		[e-mail]

This document contains forward-looking statements, which are based on the current estimates and assumptions by the corporate man agement of Symrise AG. Future performance and the results actually achieved by Symrise AG and its affiliated companies depend on a number of risks and unce rtainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Symrise's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Symrise neither plans nor undertakes to up date any forward-looking statements.

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