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MarketScreener Homepage  >  Equities  >  Xetra  >  Symrise AG    SY1   DE000SYM9999

SYMRISE AG

(SY1)
  Report
Real-time Estimate Quote. Real-time Estimate Tradegate - 09/22 07:55:00 am
118.075 EUR   -0.06%
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Symrise : Analyst Presentation

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08/07/2020 | 03:49am EDT

Financial Results

H1 2020

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

Agenda

Results H1 2020

-

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

2

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

-

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

-

Overall strong growth

But demand driven shift in our sales portfolio

5

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

6

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

7

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

9

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

10

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.

11

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.

12

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

13

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

15

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

16

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

18

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.

19

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

20

Symrise AG

Financial Calendar 2020

Contacts

29 October

Symrise AG

9M 2020 trading statement

Mühlenfeldstraße 1

37603 Holzminden, Germany

Tobias Erfurth

Investor Relations

tobias.erfurth@symrise.com

Bernhard Kott

Corporate Communications and Sustainability

bernhard.kott@symrise.com

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.

21

Disclaimer

Symrise AG published this content on 06 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 07:48:13 UTC

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Financials
Sales 2020 3 619 M 4 251 M 4 251 M
Net income 2020 345 M 405 M 405 M
Net Debt 2020 1 345 M 1 579 M 1 579 M
P/E ratio 2020 47,9x
Yield 2020 0,88%
Capitalization 16 001 M 18 776 M 18 794 M
EV / Sales 2020 4,79x
EV / Sales 2021 4,50x
Nbr of Employees 10 413
Free-Float 91,2%
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Technical analysis trends SYMRISE AG
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TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
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Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 105,57 €
Last Close Price 118,15 €
Spread / Highest target 12,6%
Spread / Average Target -10,7%
Spread / Lowest Target -31,4%
EPS Revisions
Managers
NameTitle
Heinz-Jürgen Bertram Chief Executive Officer
Michael König Chairman-Supervisory Board
Olaf Klinger Chief Financial Officer
Horst-Otto Gerberding Member-Supervisory Board
Peter Winkelmann Member-Supervisory Board
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