Symrise Sets Sales and Earnings Records

05/03/08 Symrise AG has had a successful year in 2007: the company grew twice as fast as the market thanks to its concentration on fast-growing segments and regions. With sales growth of 6.2 percent in local currencies and an increase in the EBITDA margin to more than 21 percent, Symrise reached its ambitious targets for 2007 in all respects. The Executive Board and the Supervisory Board are proposing a first ever annual dividend of 50 cents per share to the annual shareholders' meeting.

Symrise has also announce its latest proposed acquisition: the company has signed an agreement to take over the flavor business from the Danish supplier Chr. Hansen. Pending regulatory approval in the US and Germany, this acquisition should be completed before the end of April.

On the basis of local currencies, sales in 2007 were 6.2 percent higher than in the previous year. At actual exchange rates, the company achieved sales growth of 3.7 percent, from € 1,229.4 million to € 1,274.5 million. Sales of  "AND" products – products with additional benefits – increased particularly fast and reached 31.5 percent of total sales. Sales to the most important customers also grew disproportionately fast (8.2 percent based on local currencies / 5.6 percent at actual exchange rates). Sales to the ten largest customers rose to 28 percent of the total sales in the period as a result.

Thanks to the concentration on high-margin products and efficient cost management the EBITDA margin went up from 19.8 percent to 21.3 percent, increasing to € 272.1 million, 11.9 percent higher than in the previous year. EBIT grew by 19%, from € 163.5 million to € 195.7 million.

Net income for the year rose to € 97 million, following a loss of € 90 million in the previous year. Earnings per share (diluted and basic) increased to € 0.82, with underlying EPS at €1.02.

In view of the positive development of the business, the Executive Board and the Supervisory Board are proposing to the annual shareholders' meeting (which is being held on 29. April 2008) that a first ever dividend of € 0.50 per share be paid. In relation to the adjusted earnings per share, this corresponds to a dividend payout ratio of about 50 percent.

The Scent & Care division increased its sales in local currencies by 6.5 percent to € 671.3 million in 2007. At actual exchange rates, sales were up 3.7 percent. There was very good sales growth in all regions. EBITDA rose from € 113.0 million to € 134.7 million, an increase of 19.2%, attributable primarily to an improvement in the profitability of new products and strict cost management. The EBITDA margin went up from 17.4 to 20.1 percent.

The positive development in divisional sales (based on local currencies) was driven to a large extent by Cosmetics (+ 10.6 percent) and Mint (+ 12.6 percent). In Fine Fragrances, Symrise succeeded in winning some major prestigious new fragrances in 2007 and in maintaining the high local currency growth rate of 8.5 percent.

The Flavor & Nutrition division also had a successful year: based on local currencies, sales increased by 5.8 percent to € 603.2 million. The sales growth at actual exchange rates amounted to 3.6 percent. EBITDA rose from € 130.3 million to € 137.4 million, which is attributable essentially to the increase in sales. The EBITDA margin reached 22.8 percent from 22.4 percent in the previous year.

Innovations from the "Taste-For-Life" range boosted the positive results achieved in the Sweet and Savoury business units considerably. "Taste-For-Life" flavors help to reduce the sugar, salt and fat content in food products substantially without any adverse impact on taste, so they contribute to the global trend towards a healthier diet.

A global "Citrus Centre" was opened in Brazil to continue strengthening the core skills in the citrus field.

The most recent proposed acquisition by the company represents further systematic implementation of the growth strategy. Pending the approval of the relevant regulatory authorities, Symrise will acquire the flavor business from the Danish supplier Chr. Hansen and thereby strengthen its presence on the North American market: Chr. Hansen generates a substantial majority of its flavor sales in the USA. This is Symrise's biggest acquisition to date. It will strengthen the company´s current position on what is the largest domestic market for flavors in the world.

"We are present in the fast-growing international regions around the world and will be covering the North American market even better in the future than has been the case in the past. We are a reliable, flexible partner for our customers and appeal to consumers' emotions with exceptional creativity. We have innovation skills that give our products their technical basis and impressive additional flair. Our focus on efficiency makes us a fast mover and protects our profitability. All of this gives us the confidence that our sales growth will again be considerably higher than overall industry growth in 2008", says Dr Gerold Linzbach, Chairman of the Management Board of Symrise AG.

All in all, the company is expecting to achieve average sales growth of 5 to 6 percent per year in 2008 and 2009. The Executive Board also believes that there is room for further growth in the EBITDA margin.