Symrise Ag · XETR:SY1
Symrise — Symrise Ag Ord — FY2023 Earnings Presentation
34 slides from Symrise's earnings presentation, Mar 6, 2024
Slide 1: Results for the Financial Year 2023
Results for the Financial Year 2023 — Dr. Heinz-Jürgen Bertram (CEO), Olaf Klinger (CFO) 6 March 2024
Slide 2: Agenda
Agenda Overview — 01 02 02 03 03 2023 Financials Financials Strategic Initiatives Strategic Initiatives // at a Glance 3 2023 2023 8 10 Outlook Outlook 21 18 2 2
Slide 3: 2023 at a Glance
01 2023 at a Glance 3
Slide 4: Financial highlights FY 2023
Financial highlights FY 2023 Strong growth with slightly lower profitability — Sales Business Free Cash Flow1 2 Dividend proposal €4,730bn €553m €1.10 +7.9 % organic growth 11.7% of sales per share +2.4 % in reporting currency Adjusted EBITDA margin2 Net Income 4 Capex 19.1% €340m €270m EBITDA 2 €90
Slide 5: Sales 2023
Sales 2023 Industry leading organic growth — Symrise Group In €m (sales growth in %) +7.9% organic sales growth through diversified portfolio +7.9% organic growth +2.4% +2.4% sales growth in reporting currency negative FX-effect of €290m 4,618 4,730 +€35m sales contribution from Portfolio effects (M
Slide 6: Sales by Segment 2023
Sales by Segment 2023 Both Segments enjoy strong organic growth — Taste, Nutrition & Health in €m / organic growth in % Scent & Care in €m / organic growth in % 2,978 1,752 2023 2,913 1,706 2023 2022 2022 +9.3% +5.6% +2.2 %* +2.7 %* Growth driven by Fine Fragrances and Cosmetic Ingredients Food & Be
Slide 7: Sales by region in 2023
Sales by region in 2023 Double-digit organic growth in Latin America and EAME / North — America slightly below last year Sales by region Organic growth by region % of global sales in % €1,251m 26 % €979m NA 21 % North America Asia/Pacific APAC -1.8% +4.0% EAME +15.3% €1,881m Latin America 40 % +14.7
Slide 8: Sales and EBITDA
Sales and EBITDA Strong track record: High CAGR for top and bottom line — 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 20.6 21.1 21.3 20.02 19.13 CAGR 06-23 4618 4730 8.3 % 3826 3408 3521 29
Slide 9: Share price performance since 2006
Share price performance since 2006 Fourteen consecutive dividend increase and long-term value — creation Dividend 2007 – 2023 Per share in € cents After 14 successful years in the MDAX, Symrise joined the DAX 50 50 50 60 62 65 70 75 80 85 88 90 95 97 102 105 110 in September 2021 Share price develop
Slide 10: 2023 Financials
=> “2 | - 02 2023 Financials
Slide 11: Group 2023: Organic growth of 7.9%
Group 2023 Organic growth of 7.9% (reported 2.4%) — Sales development In €m Organic growth of 7.9 % or €367m driven by strong +7.9% +0.8% -6.3% business in both segments. 35 +2.4% Total sales contribution from portfolio effects (M&A) of €35m: -290 367 • Wing Biotechnology (China) • Groupe Néroli & R
Slide 12: Group 2023: Profitability impacted by difficult market conditions
Group 2023 Profitability impacted by difficult market conditions — Pressure on margin: The cost of goods sold increased slightly faster FY 2023 Change than sales, which was attributable to higher raw material and manufacturing costs. 1 2 in € million FY 2022 FY 2023 adjusted in % Sales 4,618 4,730 4
Slide 13: Taste, Nutrition & Health 2023
Taste, Nutrition & Health 2023 Healthy growth and solid profitability Short P&L — In €m Sales development In €m +9.3% +0.7% -7.8% 21 +2.2% -227 272 Organic growth of 9.3 % resulting from both divisions. - Food & Beverage developed very positively with high single digit growth, driven by Savory, Swee
Slide 14: Scent & Care 2023
Scent & Care 2023 Robust Fragrances and Cosmetic ingredients could — not offset softness in Aroma Molecules Short P&L In €m Sales development In €m +5.6% +0.9% -3.7% +2.7% Organic growth of 5.6 % dampened by Aroma Molecules 15 -63 − Fragrances enjoyed high single-digit growth with double-digit growt
Slide 15: EPS: Impacted by weaker operating results
EPS Impacted by weaker operating results — Change in € million FY 2022 1 FY 2023 2 in % Financial result: €22m below 2022, mainly due to interest expenses in EBIT 630 559 -11.3 connection with financing (€19m) and interest on pension provisions (€16m). Currency result of €11m was significantly highe
Slide 16: Amortization from business combinations impacts EPS
Amortization from business combinations… …currently impacts EPS with more than 70 cents/share — Huge bandwidth in EPS projection from analysts: (Vara Research Feb 6, 2024) Main drivers Merger of Haarmann & Reimer € 2024 2025 2026 and Dragoco in 2003: Recipes Highest 3.49 4.15 4.64 Acquisition of Dia
Slide 17: Working Capital
Working Capital Clearly defined actions and measures to reach the mid-term target of 30-32 % — WoC absolute & as % of Sales Drivers Measures: Net WoC Trade Receivables 2019 • Reinforced focused Working Capital • Slight improvement due to ADF/IDF Acquisition management in both segments Inventories Tr
Slide 18: Business Free Cash Flow (BFCF)
Business Free Cash Flow (BFCF) Reflects significant improvement of working capital — BFCF as % of sales BFCF1 of €553 million (2022: €301m) 16.0% = 11.7 % (2022: 6.5%) of sales 14.1% 12.7% 11.7% Solid EBITDA contribution CAPEX almost stable at 5.7 % of sales (€270 million) after 5.8 % (€270 million)
Slide 19: Net debt development
Net debt development Increase due to weaker earnings and still high level of working capital — Acquisitions of Schaffelaarbos, Status Quo Net debt / EBITDA(N) Néroli & Romani, Wing Biotechnology ADF/IDF + Net debt of €2,166m (2022: €2,233m) reflects and increased stake in Pinova capital increase Swe
Slide 20: Balance sheet: Equity ratio of 47.0%
Balance sheet Equity ratio of 47.0 % — Assets Equity and Liabilities Comments In €m In €m Increase in assets primarily from higher PPE. The increase in cash & cash 7,783 7,846 7,783 7,846 equivalents is offset by lower inventories. Cash & cash equiv. 315 393 530 489 Trade payables Trade receivables
Slide 21: Strategic Initiatives / Outlook
03 Strategic Initiatives / Outlook 21
Slide 22: Taste, Nutrition & Health: A powerful Augmented Flavor House
Taste, Nutrition & Health: A powerful Augmented Flavor House Expanding our horizon beyond the traditional way — Yesterday: A Traditional Flavor House in the F&F Industry Until now: A Differentiated Flavor House in the Consumer Ingredients Today: An Augmented Flavor House creating Extra Value along t
Slide 23: Our Augmented Flavor House, beyond taste and nutrition
Our Augmented Flavor House, beyond taste and nutrition Always improve our efficiency and increase our uniqueness — Our Augmented Flavor House FOOD & BEVERAGE PET FOOD HEALTH ACTIVE Portfolio optimization Strengthening capabilities Building a health platform Symrise selling 51 % of its UK fruit juice
Slide 24: Scent & Care: Market leading positions in all application areas
Scent & Care: Market leading positions in all application areas Strong foundation for continued profitable growth — FRAGRANCES AROMA MOLECULES COSMETIC INGREDIENTS Joint manufacturing platform through backward integration REVENUE SHARE Market position Market position Market position #1 Position in O
Slide 25: Scent & Care: Strategic Initiatives to accelerate growth
Scent & Care: Strategic Initiatives to accelerate growth Focus on markets, portfolio and capacities — FRAGRANCES AROMA MOLECULES COSMETIC INGREDIENTS Strong focus towards Fine Fragrances: Strengthening Symrise specialties Symrise expands strategic partnership Opening of Jardin Arabia – the new Fine
Slide 26: Capital expenses to leverage growth opportunities
Capital expenses to leverage growth opportunities Continued expansion of production footprint — Capital Expenses New constructions In €m − Pet Food "Araucaria" Brazil (completed in Q1) − Pet Food “Balam" Mexico − Cosmetic Ingredients plant Spain 119 − Cosmetic Ingredients plant JV India 151 Capacity
Slide 27: Sustainability focus 2024
Sustainability focus 2024 Increasing transparency and requirements based on CSRD (Corporate Sustainability Reporting Directive) — Environment Comment E1: Climate - Compass: SDGs E2: Pollution Change - Double Materiality Analysis E3: Water and E4: Biodiversity conducted based on CSRD marine resources
Slide 28: Outlook 2024
Outlook 2024 Very confident to achieve targets — Targets 2024 Growth dynamics Corporate view Growth faster Organic growth Business environment fully intact with than the relevant market high industry dynamics + 5-7% 3-4% Taste, Nutrition & Health Building competencies towards complementary business
Slide 29: CEO change at Symrise
CEO change at Symrise Heinz-Jürgen Bertram hands over position to — Jean-Yves Parisot Growth dynamics Heinz-Jürgen Bertram: “After 21 years of service at Symrise, of which 19 as a Dr. Jean-Yves Parisot member of the Executive Committee and 15 as CEO, I’m retiring on my own request and by mutual agre
Slide 30: Symrise
ry symrise
Slide 31: Long-term financial objectives 2028
Long-term financial objectives 2028 Symrise continues with ambitious financial targets — Financial targets until 2025 until 2028 Sales (€ bn) 5.5 – 6.0 7.5 – 8.0 Organic sales growth (CAGR) 5 – 7% 5 – 7% Sales growth incl. M&A (CAGR) 6 – 9% 8 – 10% EBITDA margin 20 – 23% 20 – 23% Business Free Cash
Slide 32: Business Free Cash Flow (BFCF) bridge
Business Free Cash Flow (BFCF) Bridge from consolidated Cash Flow statement — Consolidated Statement of Cash Flows Business Free Cash Flow calculation in € million in € million Net Sales 4,730.2 Net Sales 4,730.2 EBITDA reported 851.7 EBITDA reported 851.7 adjustment one-offs 19.2 adjustment one-off
Slide 33: Exceptional impact: H1 & H2 2022 vs 2023
Exceptional impact Comparison H1 & H2 2022 with H1 & H2 2023 — H1 2022 H2 2022 H1 2023 H2 2023 positive + €m negative - €m positive + €m negative - €m positive + €m negative - €m positive + €m negative - €m Downtime Downtime costs and costs and related related Sale of Partial Sale of revaluation of
Slide 34: Symrise AG Financial calendar Contact
Symrise AG — Financial calendar Contact Symrise AG 25 April 01 August Muehlenfeldstraße 1 Q1 2024 Trading statement H1 2024 Results 37603 Holzminden, Germany Tobias Erfurth 15 May 24 October Investor Relations Annual General Meeting 9M 2024 Trading statement tobias.erfurth@symrise.com 2024 Bernhard