Symrise AG : Symrise Achieves Sales Increase and Gains Market Share at Ongoing High Profitability

Symrise AG further increased its pace in the second quarter and notably strengthened sales and earnings in the first half of 2013. The Group grew in both divisions and across all regions and increased sales to € 934.7 million (H1 2012: € 871.6 million). This corresponds to an increase of 9.5 % at local currency. Earnings before interest, tax, depreciation and amor-tization (EBITDA) rose to € 191.2 million. With an EBITDA margin of 20.5 %, Symrise once again achieved a high profitability level despite continu-ing investments in capacity and personnel expansions.

Dr. Heinz-Jürgen Bertram, CEO of Symrise AG: "Symrise also substantially grew in the second quarter - achieving strong figures in both the emerging and developed markets. With an increase of 14 % at local currency, North America was the region posting the strongest sales growth. EAME, which was impacted last year, saw a good recovery and also achieved solid sales growth. In our op-erations, we continued at full speed: We introduced a number of new cosmetic ingredients and consolidated our powder mixing operations for flavor manufac-turing under one roof at our headquarters in Holzminden; we also brought addi-tional capacities into operations. After a robust start in the first half, we are en-tering into the second half of our anniversary year from a strong position. We will continue to implement our business expansion plans, adding new and inno-vative product solutions to our portfolio. In addition, we will enhance our position in both, industrialized nations and Emerging Markets."

Growth in all Regions
In the first half of 2013, Symrise increased sales by 7.2 % in the reporting currency to € 934.7 million (H1 2012: € 871.6 million). At local currency, sales were up by 9.5 %. Every region and both divisions contributed to this result. North America posted the strongest growth with sales up by 13 % (14 % at local currency) in the first half. The second largest gains were made in Asia/Pacific, with a sales increase of 10 % (13 % at local currency). Compared to the previous year, notably improved figures were recorded in EAME: the region achieved a pleasing sales growth of 5 % (6 % at local currency) thanks to especially good dynamics in Eastern Europe. As expected, Latin America de-veloped modestly compared to its above-average growth in previous years, realizing a sales growth of 3 % (10 % at local currency).

EBITDA of € 191.2 Million Reflects Sales Growth and Investments
Symrise's profitability especially benefited from the company's robust sales in the first half of 2013. A slight relaxation in the prices for chemical raw materials also had a positive impact. By contrast, expenses increased for the continued expansion of capacities in sales as well as in research and development. In fact, R&D expenses saw the strongest increase and grew by 13 % year on year due to the full project pipeline. Nonetheless, earnings before interest, tax, de-preciation and amortization (EBITDA) rose by 11 % at local currency to € 191.2 million (H1 2012: € 174.0 million). Symrise therefore remained highly profitable, achieving an EBITDA margin of 20.5 %.

Net income for the reporting period rose by 12 % to € 93.4 million (H1 2012: € 83.5 million). Earnings per share correspondingly increased to € 0.79 after € 0.71 in the first half of 2012.

High Utilization Supports Cash Flow from Operating Activities
Cash flow from operating activities increased by 23 % to € 77.0 million (H1 2012: € 62.5 million). This was mainly due to the strong increase in sales and solid earnings in the first half. The ratio of net debt including pension provisions to EBITDA amounted to 2.5 as of June 30, 2013; despite the dividend distribu-tion totaling € 77 million the ratio thus only slightly changed compared to the level of the year end 2012 (Dec. 31, 2012: 2.4).

Emerging Markets Post High Sales Growth of 12 %
As part of its strategy, which aims at profitable growth, Symrise continues to advance its activities in the Emerging Markets. Symrise grew sales by 12 % at local currency in these rapidly expanding markets, thereby exceeding the Group's overall growth rate. The Emerging Markets' share of total sales rose to 48 % (H1 2012: 47 %).

Scent & Care Division
The Scent & Care division expanded its business in every region and boosted its sales to € 490.3 million. Compared to the prior year period, this corresponds to a sales increase of 10.3 % (12.5 % at local currency). The production capacities for menthol, which were expanded in 2012, have been well utilized. Scent & Care also benefited from high demand in the areas of Oral Care and Fine Fragrances as well as cosmetic ingredients. In the second quarter, Symrise was once again recognized for its innovative strength and received three awards for new substances.

Scent & Care achieved its strongest growth in North America with sales up 18 % at local currency; greatest contributions came from the Aroma Molecules and Fragrances business units. The fragrance activities acquired from Belmay in 2012 also contributed. In Asia/Pacific, the division generated a double-digit sales growth of 17 % at local currency. EAME increased sales by 9 % at local curren-cy and Latin America was up by 8 % at local currency.

Scent & Care increased its EBITDA by 21 % to € 98.4 million (H1 2012: € 81.0 million). The EBITDA margin was at a pleasing level of 20.1 % (H1 2012: 18.2 %).

Flavor & Nutrition Division
Flavor & Nutrition increased sales by 4 % to € 444.4 million (H1 2012: € 427.2 million). At local currency, this corresponds to a growth of 7 %.

Applications for culinary products and snacks as well as Consumer Health particularly benefited from high demand. The strongest growth was recorded in Latin America with a sales increase of 13 % at local currency. The second-strongest region was Asia/Pacific, which posted 9 % growth at local currency. In North America, sales were up by respectable 8 % at local currency, despite high figures from the previous year. The EAME region continued its positive developments from the first quarter and increased sales by 4 % at local currency. Ample demand in emerging markets of Eastern Europe as well as in the es-tablished Western European markets contributed to the good growth. To the contrary, demand was weaker in Southern European countries.

Flavor & Nutrition generated an EBITDA of € 92.8 million (H1 2012: € 93.0 mil-lion). Despite sustained high prices for natural raw materials and additional in-vestments relating to new customer and research projects, EBITDA remained in line with the previous year. The EBITDA margin of 20.9 % (H1 2012: 21.8 %) was slightly higher than the Group's figure.

Outlook
Overall, Symrise expects robust demand to continue in the second half of 2013. Apart from some regional markets, the Group also expects good dynamics across all regions. Symrise therefore confirms its goal for 2013 to once again notably exceed growth of the global market for fragrances and flavors, which is estimated to be between 2 % and 3 %. Additionally, Symrise continues to work systematically towards its medium-term targets set for the 2020 fiscal year. Ac-cording to these, the Group wants to achieve an annual sales growth (CAGR) of between 5 % and 7 % with an EBITDA margin between 19 % and 22 %.

Key figures of the group

About Symrise:
Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients and raw materials as well as functional ingredients. Its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements.

Its sales of € 1.735 billion in 2012 place Symrise among the top four companies in the global flavors and fragrances market. Headquartered in Holzminden, Germany, the Group is represented in over 35 countries in Europe, Africa, the Middle East, Asia, the United States and Latin America.

Symrise works with its clients to develop new ideas and market-ready concepts for products that form an indispensable part of everyday life. Economic success and corporate responsibility are inextricably linked as part of this process. Symrise thus takes sustainability into account in every part of its corporate strategy. The company was awarded the German Sustainability Award in 2012.

Media contact:
Bernhard Kott
Phone +49 (0)5531 90-1721
bernhard.kott@symrise.com

Investor contact:
Tobias Erfurth
Phone +49 (0)5531 90-1879
tobias.erfurth@symrise.com