Symrise : Analyst Presentation Fiscal Year 2019

Results for the

Financial Year 2019

Dr Heinz-Jürgen Bertram (CEO), Olaf Klinger (CFO) - Frankfurt, 10 March 2020

Agenda

Overview

-

1. 2019 at a Glance
2. Financials 2019
3. Strategic Initiatives / Outlook
   -

2

2019 at a Glance

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)1margin		Net income1		Investments
20.8%			€304m		€182m
	EBITDA(N) +12.2 % to €707.2m
		Earnings per share3€2.25			5.3 % of sales

1Adjusted for transaction and integration costs; including IFRS 16 effect	2Business Free Cash Flow = EBITDA(N) - Investments+/- changes in Working Capital	4
3Attributable to shareholders of Symrise AG

Sales 2019

Continued accelerated growth

Symrise Group

In €m (sales growth in %)

	3,408
3,154	+5.7 % organic growth
2018	2019
+8.0 %

Comments

+5.7 % organic sales growth Driven by all segments and regions

-

+8.0 % sales growth in reporting currency

Good capacity utilization and strong demand

-

ADF/IDFwith good start, contributed +€32 million

5

Sales by segment in 2019

Growth across all segments

in €m/organic growth in %		+5.6%
1,324	1,419
2018	2019	+7.2% reported

Scent & Care

Double-digit growth with Fine Fragrances, high demand in EAME and Latin America. Good momentum with Cosmetic Ingredients and Aroma Molecules.

1,191	1,257	+3.8%
2018	2019	+5.6% reported

Flavor

Dynamic single-digit growth in Asia/Pacific in Sweet and Beverages, especially in Indonesia, Malaysia and China.

639	732	+9.3%
2018	2019	+14.5% reported

Nutrition

Double-digit growth in Pet Food in North and Latin America.

ADF/IDF contributed as expected after closing in November, +€32 million.

6

Sales by region in 2019

Dynamic growth in Emerging Markets

By region

organic growth in %

North	EAME
America

+4.2%+3.6%

Asia

Pacific

+7.4%

Latin

America

+12.8%

Sales by region

2019

€758m	€809m
22%	24%
	12%
42%
€1,430m	€411m
NA	LatAm
EAME	APAC

7

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	3,408
EBITDA	243		272		263		246		331		316		340		373		465		572		625		630		631		707	8.6%
															20141			20161					2019 2
	2006	2007	2008	2009	2010	2011	2012	2013	2015	2017	2018

1	Adjusted for transaction and integration costs as well as one-off valuation effects related to business combinations	8
2	Adjusted for transaction and integration costs related to business combinations; including IFRS 16 effect

Share price performance +42 % in 2019

Very attractive dividend and long-term value creation

Dividend 2007 - 2019							88	90	95
Per share in € cents				75	80	85
					65	70
		50	60	62
50	50
Share price 2007 - 2019
500%													Sym rise
400%
300%													MDAX
200%
100%													DAX
0%
2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019

Comments

Continued positive share price development; exceeding German DAX and MDAX

+42 % in 2019

-

Attractive dividend proposal 95 € cents per share for 2019

9

2 Financials 2019

10

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
		32.0	42.6
	179.3		good capacity utilization in all segments and regions.
					-
					Portfolio effectfrom ADF/IDF with sales of €32m.
	3,154.0		3,407.9	-
					Positive currency effect of€43m mainly driven by stronger
					USD.
FY 2018	Organic	Portfolio	FX	FY 2019
	growth

11

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 profitincrease 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% reflects eased raw material markets in 2019.
EBITDA	631	691	707	12.2		-
	EBITDA(N) increased by €76m to a 20.8% margin.
EBITDA margin in %	20.0	20.3	20.8			-
		Higher depreciationdriven by last years investments and IFRS
Depreciation	92	124	124	33.6		16 adoption.
	-
Amortization	104	103	103	-0.9		EBIT(N) increase of €47m (+10.7%) underlines the profitable
	growth.
EBIT	434	464	481	10.7
EBIT margin in %	13.8	13.6	14.1

1Adjusted for transaction and integration costs; including IFRS 16 effect

12

Scent & Care 2019

Strong sales growth on good margin level

Sales development					Short P&L
In €m					In €m
							2018	2019	Var. %
		1.5%	7.2%			Sales	1,324	1,419	7.2
5.6%			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, withdouble-digit
						growth in Fine Fragrances. Cosmetic Ingredientsand Aroma
						Moleculeswith moderate growth (after double-digit growth in FY 2018).
	FY 2018 Organic Portfolio	FX	FY 2019	-
	Margin up to 19.6%despite a continuing difficult raw material market

growth	in 2019 (Citral crisis).

13

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
44.8	21.4				EBITDA	244	269	10.1
				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 increase
						opportunities.
						-
						Strong demandparticularly in Asia/Pacific (mainly sweet and beverage
	FY 2018 Organic Portfolio	FX	FY 2019		applications).
	growth					-
						Margin increaseto 21.4 % related to a more favorable product mix.

14

Nutrition 2019

Strong growth in Pet Food

Sales development						Short P&L
In €m						In €m
								2018	2019	20191	Var. %
		5.0%	0.1%	14.5%			Sales	639	732	732	14.5
9.3%			EBITDA	132	144	161	21.5
59.7	32.0	0.9				EBITDA margin	20.7%	19.7%	22.0%
					EBIT	49	52	68	38.2
638.8			731.5			Comments
							Very strong dynamics in Pet Foodmainly in the Americas, driven by
							global and regional customers.
							-
							Successful start of ADF/IDFsince closing in November 2019.
	FY 2018 Organic	Portfolio	FX	FY 2019
		-
	growth						Profitability on a very healthy level of 22 %.

1Adjusted for transaction and integration costs; including IFRS 16 effect

15

EPS

New record level of €2.25

In €m	2018	2019	2019	1	Var. %		Comments
Normalized

	EBIT	434	464	481	10.7	Normalized Financial resultexcludes 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%)
	EBT	389	418	425	9.2	mainly due to higher earnings in countries with lower tax rates and
	accelerated depreciation allowances.
						-
		-109		-114
	Income tax	-113	4.6	Normalized EPS2on new record level of €2.25 despite 5.6m new
	(28.1%)	(27.1%)	shares issued in February 2019 .
		275	298	304	10.2	-
	Net income2	Dividendof €0.95 to be proposed at AGM on 6 May 2020.
	EPS* in €	2.12	2.21	2.25	6.1
1Adjusted for transaction and integration costs; including IFRS 16 effect		16

2Attributable to shareholders of Symrise AG

Business Free Cash Flow (BFCF)

Strong cash delivery compared to 2018

BFCF as % of Sales

16.4%

13.3%				14.1%
	12.5%	11.8%
	9.9%
		9.9%
		9.9%

2012	2013	2014	2015	2016	2017	2018	2019
Definition of BFCF:	EBITDA
		./.	CAPEX
		+/./.	Change in Working Capital

= Business Free Cash Flow

BFCF increased by 53% to €476m = 14.1% of sales

Strong EBITDA growth

Working Capital growth belowtop-line

growth

CAPEX 5.3% of sales (€182m) after

7.2% (€226m) in 2018

Ambition 2020

BFCF around 14% of sales

17

Balance sheet

Solid financial position with equity ratio of 41.4 %

Assets									Equity and Liabilities			Comments
In €m									In €m
					5,957					5,957			Increase in Intangibles & PPE mostly
							446							332	Trade payables
	4,920					4,920					driven by ADF/IDF transaction.
				648
										-
Cash & equiv.				280			889				316			1,966	Borrowings		Borrowings:New Promissory Loan
Trade receivables				596
													(Schuldschein / €250m) and term loan (€200m)
Inventories				845							1,659				Pensions		for ADF/IDF.
												605		-
											513			422	Other		Pension provisions increased by €92m
Intangibles							3,716				316			168	Deferred tax		reflecting reduction in German interest rates
												liabilities		from 2.0% to 1.2%.
& PPE				2,948							172
															-
														2,464	Equity
											1,944				Other liabilities increased by €96m due to
																IFRS 16 leasing.
Other			251			258										-
	FY 2018		FY 2019		FY 2018	FY 2019			Equity increase of €400m for ADF/IDF.

18

Net debt development

Covenant in long-term target range

Net debt / EBITDA(N)

	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
Net debt (incl. provisions & pension and			Net debt/EBITDA(N) ratio
leasing obligations) /EBITDA(N) ratio

Status Quo

• Net debt² of €1,617m reflects

2.3 x EBITDA(N)

• Net debt² including pensions and similar obligation of € 2,222m reflects
  3.1 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

19

3 Strategic initiatives

Outlook

20

Corporate strategy will continue

individual levers specified for 2020

Vision

		Growth	Efficiency	Portfolio
		·Maximization of	·Improvement of	·Portfolio expansion
		customer spectrum	processes	in Nutrition
		·Growth in Emerging	·Optimizing raw	·Bolt-on M&A in the
		Markets	material portfolio	core business and
		·Targeted innovation		complementary
			applications
			Sustainability
			Values

Strategic priorities 2020

Growth

Continue commercialization of broad customer base. Fully exploit incremental growth initiatives.

Efficiency

Further develop efficiency programs through Artificial Intelligence.

Improve processes by using Green Chemistry and Biotech.

Secure raw material access via backward integration.

Portfolio

Integration of ADF/IDF: strengthen Nutrition capabilities and portfolio.

21

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	21%			12%
				EAME
	Food	Food			Ingredients	Molecules
						Scent & Care
									42%	22%	42%	North America
1.
									Flavor
2.												Asia/Pacific
									Nutrition
3.								37%				Latin America
									24%
4.
5.
6.								Sales distribution		Innovation - enabler for growth
7.
							by Customer Type		Expenses by segments / total spend €213m
8.
9.										Global Key
10.										14%
									Accounts		Scent & Care
11.								33%	34%
							Local Customers
12.											49%	Flavor
-Multiple touch points with clients						Regional	37%		Nutrition
			33%
-The largest customer constitutes only 5% of overall sales		Customers
													22

Pillar Efficiency

Focus on sustainable processes and raw material access

levers	Process optimization
important

Cost of raw materials

Formula efficiency

Sampling

Pricing

Working capital

Expand cross-divisional purchasing projects

Simplify formulas, reduce the number of raw materials

Reduce number of samples without win rate measurements

External services and small quantities with surcharges

Improve inventories and payment targets

Green chemistry

Plant extracts

Proteins

SymriseSymriseapplicationapplication

areas areas

At present, four raw material platforms are essential for Symrise

Microbiom modulation

PF

23

Pillar Portfolio

Innovation through networking of competencies

We havesuccessfully

expanded our competencies over the past five years.

We generate more than one third

of our salesoutside the traditional F&F business.

We have leading positions in

various fields of application.

We focus on sustainable technologiesas an enabler for innovation.

Sym rise

Application

areas

PF

Our focus is on leveraging growth opportunities

24

Symrise remains clear sustainability leader

Climate protection and biodiversity key focus areas

Climate protection

-Climate positive from 2030 onwards

-Science-based target: reduce carbon emissions by 7.2 % pa

Backward integration in natural raw materials

with strong focus on biodiversity and social support for local communities

-Purchase total electricity from renewable sources by 2025

Tons CO2/€m added value

317

293 284260237 213

189 166142

119 95

71 48

24 0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

					Hemp &
					Onions
					Germany
Cranberries
NantucketIsland
			Lavender &
			Beetroot			Sustainable
			France			Citrus
						Calabria &
						Sicily
Organic Banana			Oils &
Ecuador
		Butters
			Amazonian

Clove &

Patchouli

Sulawesi

Carbon Disclose Project Ratings 2019

Climate: A / Water: A / Forest: A-

Citrus

Vanilla

Madagascar

South Africa

25

Investments and growth initiatives

Capacity expansion and innovation driving growth

Expenditure							Growth initiatives
						Scent & Care	Flavor	Nutrition
In €m							Menthol	Meat alternatives	Pet Food
								USA - expanded production	Taste for alternative proteins,	Colombia - new production site,
								capacity (2019)	unique and	according to highest
2019			182
			Cosmetic Ingredients	innovative portfolio	sustainability standards (2020)
2018					226
					USA - expanded production	Code of Nature®
								capacity (2019)
								Expertise in naturalness
								Fragrances
				Flavor
					New generation of	Natural Flavors Extraction
		50.2		France - capacity expansion for
Scent &							encapsulation, SymCap®	USA - establishing new
2019						technology and facility	extrusion technology (2020)
Care
85.6									Brazil - new production site
										(2022)
				Nutrition		Fragrances / Flavors		China - new site production
		45.8		China - new production site to expand footprint and capacities
								(2022)
								(2020)

26

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

Outlook 2020

Confident to achieve targets

Targets 2020		Growth dynamics

Growth faster than the relevant market

Grow th

3-4%

Organic growth

€m

+5-7%

3,408
2019	2020

Added competencies and further diversified product

portfoliothrough acquisition of ADF/IDF.

-

Launch of new product solution and capacity

expansionin fast growing and high-margin segments and markets.

-

Profitability	Business Free
EBITDA margin	Cash Flow(% of sales)

>20%	14%
~

Efficiency programswith focus on processes, e.g. Green Chemistry and Biotech, and expansion of backward integration of raw materials.

28

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	1/3global, regional, local	1/3global, regional, local
	EBITDA margin	19 - 22 %	20 - 23 %due to more favorable product 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

29

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 January 2020. He will stand for election at AGM, 6 May 2020

Nominated for the Supervisory Board, 4 March 2020 He will be nominated for election at AGM, 6 May 2020

Michael König is CEO of Norwegian Elkem ASA, Oslo.

He held a number of management positions in Germany and China such as with China National Bluestar. At Bayer AG he was Board member, responsible for Human Resources, Technology and Sustainability and the regions Asia/Pacific, Africa and Middle East.

Michael König has a degree in Chemical process engineering.

Peter Vanacker is CEO of Finnish Neste Corporation.

In his thirty-years professional career, he gained extensive management experience in an international environment, such as CEO of CABB Group or as Chief Marketing and Innovation officer Material Science at Bayer AG.

Peter Vanacker has a degree in Chemical engineering.

30

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		[e-mail]
H1 2020 results
		Bernhard Kott
29 October		Corporate Communications
9M 2020 trading statement		[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.

31

Back up

32

Long-term growth objective 2025

Doubling sales

Long-term objectives 2025

In €bn

		bn		- 4.5 bn
2009	1.3bn	€ 3.0	2022	€ 4.0
€	2017

€ 5.5 - 6.0 bn

2025

Comments

-

Efficient set up, global presence and strong portfolio support business performance inmid-termuntil 2022 as well as inlong-term2025

Organic growth

Incremental growth

Bolt-on-M&A

33

Q4 2019

Group and S&C

Group					Scent & Care
In €m					In €m
	5.2%	4.1%	1.7%	11.1%
	40.1	32.0	13.4			5.9%		1.6%	7.4%
							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

Q4 2018

Flavor and Nutrition

Flavor		Nutrition
In €m		In €m

3.1%	1.7%	4.7%
8.5	4.7		7.4%	19.1%	2.2%	28.7%
				3.7
278.6		291.8	12.4	32.0
			215.5
			167.4
Q4 2018 Organic Portfolio	FX	Q4 2019		Q4 2018 Organic Portfolio	FX	Q4 2019
growth				growth

35

Maturity profile

Balanced maturity profile with low refinancing risks

Maturity Profile

In €m

						78
					40
40					16
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
	Placement 2010			Notes 2015		Notes 2019
$ 90m	$ 175m	€ 300m	€ 500m	€ 500m	€ 400m	€ 250m	€ 200m
-	-	-	-	-	-	-
7y	10y	6y	6.5y	5, 7, 10y	7y	5, 7, 10y
-	-	-	-	-	-	-
			Coupon 1.25%		Coupon 0.2375%
					Conversion rate
					€ 91.8595 at emission

36