EANS-News: Symrise AG in 2011 again highly profitable with an EBITDA margin of 20 %

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annual result

Holzminden (euro adhoc) - • Target EBITDA margin reached despite
steep rise in cost of raw materials • Sales up by 2 % to EUR 1.584
billion • Sales increase by 7 % in business with global customers •
Earnings per share up 10 % to EUR 1.24 • Proposed dividend increase
to EUR 0.62

Symrise AG upheld its industry-leading profitability and achieved its
targeted EBITDA margin of 20 % in Fiscal Year 2011. Despite the
economic slowdown over the course of the year and the burden of
increased raw material prices, the Group again demonstrated its
earnings power. At an increase of 2 %, sales growth was moderate
compared to the previous year which was characterized by catch-up
effects. Sales amounted to EUR 1.58 billion at local currency and
reflect both, the more cautious market environment and selective
portfolio streamlining by discontinuing less profitable business.
Symrise saw above-average growth in business with global customers,
where sales rose by 7 %. Activities in Emerging Markets contributed
46 % of sales in 2011.

Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG,
said: "We held our ground well in 2011 and proved that we can also
achieve our ambitious earnings targets in a weaker economic
environment. Given the widespread turbulence in many regions of the
world and high volatility on commodities and capital markets,
maintaining profitability was the top priority for Symrise. We
therefore consequently discontinued businesses which were not making
a sustainable earnings contribution. And we continued our backward
integration for strategic raw materials. Our industry-leading EBITDA
margin of 20 % is thus the result of selective portfolio
streamlining, intelligent raw material sourcing and restrictive cost
management throughout the Group."

Dr. Bertram added: "At the same time we successfully grasped market
opportunities in 2011 and expanded our business with global
customers, growing sales by above-average 7 %. In addition, we
continued to drive expansion in Emerging Markets. In 2006, just 37 %
of our sales came from Emerging Markets, whereas by 2011 the figure
has risen to 46 %. Bottom line our net income increased by 10 %
compared to the prior year. In view of our solid overall performance,
the Executive Board and Supervisory Board will propose a dividend
increase to EUR 0.62 to the Annual General Meeting."

Sales Increase to EUR 1,583.6 Million

In 2011 Symrise reported sales of EUR 1,583.6 million. This was even
higher than the previous year, which was characterized by catch-up
effects (2010: EUR 1,571.9 million). The increase of 1 % (2 % at
local currency) was compara-tively modest. This is due to the more
subdued business cycle and the consequent discontinuation of
low-margin activities.

Latin America was the fastest-growing region with a sales increase of
3 % (5 % at local currency). Symrise particularly benefited from
strong demand for beverage applications, savory products and cosmetic
applications. Sales growth in the Asia/Pacific region was
comparatively modest at 2 % (at local currency 2 %). This is largely
due to portfolio streamlining and a weaker performance in beverage
applications. Sales in the EAME region went up by 1 % (2 % at local
currency), mainly reflecting the political unrest in the Middle East
and North Africa as well as weaker demand in the application areas
Fine Fragrances and Household. North America was not able to continue
its strong prior-year growth rates due to ongoing weak consumer
demand. Sales declined by 4 %, rising slightly by 1 % at local
currency. The region saw strong increases in vanilla and menthol,
among others.

Targeted EBITDA-Margin of 20 % Achieved - EPS up 10 %

In Fiscal Year 2011, Symrise generated earnings before interest,
taxes, depreciation and amortization (EBITDA) of EUR 315.9 million
(2010: EUR 331.2 million). The result reflects the modest sales
performance, as well as the higher cost base caused by the sharp rise
in raw materials prices. The backward integration nonetheless secured
Symrise´s access to sufficient quantities of high-quality strategic
raw materials. Despite the challenges on the cost side, the Group
succeeded in keeping profitability at its target level, achieving an
EBITDA margin of 20.0 % (2010: 21.1 %).

Net income rose by around 10 % to EUR 146.5 million (2010: EUR 133.5
million). Symrise benefited from the positive effects of the
refinancing completed in 2010 and the corresponding reduction in
financing expenses. Earnings per share went up from EUR 1.13 in the
previous year to EUR 1.24. In view of the solid overall performance
in Fiscal Year 2011, the Executive Board and Supervisory Board
propose a dividend increase of EUR 0.62 (2010: EUR 0.60) at the
Annual General Meeting to be held on May 15, 2012.

Debt Ratio of 2.2 at the Lower End of the Targeted Range

Cash flow from operating activities amounted to EUR 200.9 million
(2010: EUR 235.1 million). The change is due to the slightly lower
earnings and the cash outflow for tax payments for which provisions
were made in prior years. The ratio of net debt including pension
provisions to EBITDA amounted to 2.2 (2010: 2.2) and was at the lower
end of the targeted range of 2 to 2.5.

Market Presence Strengthened in Emerging Markets

In the past fiscal year, Symrise consistently pursued its expansion
in fast-growing Emerging Markets. In 2011, the Group started
operations at the plant in Moscow from where it supplies the entire
Russian market as well as the CIS states. At the site in Singapore,
which serves the emerging Asian markets, the third phase of a S$ 40
million investment program was completed.

Symrise generated 46 % of its total sales for 2011 in Emerging
Markets. The year-on-year sales increase in these countries was
modest, up just 3 % at local currency. This is primarily due to
portfolio streamlining.

Dynamic Growth in Business with Global Customers

Sales from activities with multinational food and consumer goods
companies grew faster than average in 2011. Intensive key account
management and a stronger position on core lists paid off yet again.
It enabled Symrise to boost its sales with this customer group by 7 %
at local currency, significantly outperforming sales growth for the
Group as a whole. At 31 % (2010: 30 %) the share of business with
global customers was slightly up on the previous year.

Both business divisions increased their sales from global customer
activities by above average, with Scent & Care reporting a sales
increase at local currency of 6 % and Flavor & Nutrition saw sales
with major customers climb by 8 %.

Scent & Care Division

Scent & Care reported sales of EUR 801.4 million (2010: EUR 804.5
million). Compared to the previous year´s strong figures, this
represents a slight decrease of 0.4 %. At local currency, Scent &
Care achieved a slight sales increase of 1 %.

In all regions, the division benefited particularly strong from
demand for menthol and was able to increase sales in this application
area at a double-digit rate. The strong performance confirms the
decision taken in 2010 to double production capacities in this area.
Symrise plans to put the new menthol plant in Holzminden into
operation over the course of the year. Within the division, the Life
Essentials business unit and the Oral Care application area both
developed particularly well. This was offset by a decline in sales
due to the discontinuation of low-margin business in the Household
application area. In addition, the economic slowdown caused sales to
fall at Fine Fragrances, where demand is more dependent on consumer
sentiment.

Latin America was the fastest growing region for Scent & Care, with
sales rising by 6 % at local currency. Demand for menthol and for
cosmetic ingredients was particularly good. The second strongest
region, with sales growth at local currency of 3 % was North America.
Strong increases in Fine Aroma Chemicals, Oral and Personal Care were
the main drivers. In the Asia/Pacific region, the division generated
growth of 2 % at local currency and benefited from healthy demand for
cosmetic applications, UV Protection and Fine Aroma Chemicals. This
was offset by portfolio adjustments. Sales in EAME fell by 2 % at
local currency as business was adversely impacted by the political
unrest in the Middle East and North Africa.

EBITDA for the division totaled EUR 157.6 million, compared to EUR
160.8 million in 2010. The EBITDA margin of 19.7 % was slightly below
of the previous year´s figure of 20.0 %.

Flavor & Nutrition Division

Flavor & Nutrition saw sales increase by 2 % to EUR 782.2 million
(2010: EUR 767.4 million). Adjusted for exchange rate effects, this
corresponds to growth of 3 %. The division benefitted above all from
its business expansion and its strong position with global customers.

The fastest growth rate came from Flavor & Nutrition in EAME, with a
sales increase at local currency of 5 %. The division generated new
business both in developed Western European economies and in Emerging
Markets. In Latin America the sales increase at local currency
amounted to 2 % and reflects strong comparables, as well as the
discontinuation of unprofitable businesses, and non-core activities
in Mexico. Compared to the strong development in 2010, sales growth
at local currency in Asia/Pacific was also comparatively modest at 2
%. This was due to slower economic growth as the year progressed,
especially in beverage applications. Whereas business in North
America benefited from catch-up effects in the previous year, it was
marked by the difficult market environment and delays in receiving
customer orders in 2011. Sales in the region fell by 2 % at local
currency.

In the course of adding innovative solutions for rapidly growing
segments to the portfolio, Flavor & Nutrition developed new product
solutions and expanded existing platforms in the Consumer Health
business. The unit launched the new umbrella brand Actiplants®, under
which all functional botanical extracts are brought together. In
addition, Flavor & Nutrition expanded its research in the area of
functional food and intends to add further expertise in 2012 as part
of the expanded partnership with the Swedish company Indevex Biotech.

Flavor & Nutrition generated EBITDA of EUR 158.3 million (2010: EUR
170.4 million). Despite modest sales growth and the higher cost of
raw materials, the EBITDA margin was maintained at 20.2 % (2010: 22.2
%).

Outlook for 2012

For Fiscal Year 2012 Symrise is anticipating the following economic
conditions: Consumer confidence is expected to remain stable compared
to last year. The uncertainty caused by the sovereign debt crisis
will persist, especially in Europe. Prices for raw materials will
continue to be volatile and will remain on a high level overall.

The Group expects that after a modest start into the year, the global
economy will pick up in the second half of 2012. Particularly
positive momentum is again expected to come from Emerging Markets.

In the current year, Symrise will put the new production plant for
synthetic menthol into operations in Holzminden. In connection with
this substantial increase in capacity, Symrise is expecting ramp-up
costs in the first half of the year, which will be neutralized over
the remainder of the year. The additional capacity will strengthen
Symrise´s position as the leading global producer of menthol and
enable the Group to meet the high demand for menthol even better.

In 2012, Symrise will continue to concentrate on generating
profitable growth. At this point in time the Group expects to
increase sales by between 2 and 4 %. Furthermore, Symrise remains
committed to maintaining its industry-leading profitability with an
EBITDA margin of around 20 % for the full year.

Key Figures of the Group

|In EUR m | 2010 | 2011 | Change| Change|
| | | | in %| in %|
| | | | | at LC|

|Sales | 1,571.9| 1,583.6| 0.7| 2.0|
| | | | | |
|EBITDA | 331.2| 315.9| -5| -4|
|EBITDA margin in % | 21.1| 20.0| | |
|EBIT | 244.4| 234.4| -4| -3|
|EBIT margin in % | 15.5| 14.8| | |
|Net income | 133.5| 146.5| 10| |
|Earnings per share in EUR | 1.13| 1.24| 10| |
|Dividend in EUR*2 | 0.60| 0.62| 3| |
|Balance sheet total | 2,059.0| 2,098.2| 2| |
|(as of Dec 31) | | | | |
|Capital ratio (as of Dec 31) in % | 40.9| 43.5| | |
|Investments | 70.5| 67.3| | |
|Net debt (incl. pension | | | | |
|provisions / EBITDA) | | | | |
(as of Dec 31) Ratio | 2.2| 2.2| | |
|Operating Cash Flow | 235.1| 200.9| -15| |
|Employess (as of Dec 31) / FTE*1 | 5,288| 5,434| 3| |
| | | | | |
|Scent & Care | | | | |
|Sales | 804.5| 801.4| -0.4| 1.0|
|EBITDA | 160.8| 157.6| -2| -1|
|EBITDA-Marge in % | 20.0| 19.7| | |
| | | | | |
|Flavor & Nutrition | | | | |
|Sales | 767.4| 782.2| 1.9| 3.1|
|EBITDA | 170.4| 158.3| -7| -6|
|EBITDA margin in % | 22.2| 20.2| | |

*1 Not including trainees and apprentices, FTE = Full Time Equivalent
*2 Proposal

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 and foods, the pharmaceutical
industry and producers of nutritional supplements.

Its sales of EUR 1.58 billion in 2011 place Symrise among the top four in the
global flavors and fragrances market. Headquartered in Holzminden, Germany, the
Company is represented in over 35 countries in Europe, 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. In doing so,
Symrise combines its insights into consumer trends with cutting-edge
technologies, focusing on innovative trend and lifestyle products that have
additional practical value for the consumer. Symrise - always inspiring more…
www.symrise.com

Further inquiry note:
Symrise AG
Investor Relations
Tobias Erfurth
ir@symrise.com

end of announcement euro adhoc
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company: Symrise AG
Mühlenfeldstraße 1
D-37603 Holzminden
phone: +49 (0) 5531/90-0
FAX: +49 (0) 5531/90-1649
mail: ir@symrise.com
WWW: http://www.symrise.com
sector: Chemicals
ISIN: DE000SYM9999
indexes: MDAX
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English