EANS-News: Symrise achieves EBITDA margin of 20 %

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6-month report

Subtitle: • Group sales rise by about 3 % at local currency
• Business with top 10 customers and Emerging Markets supports growth
• Currency effects and high raw material prices affect earnings
• Outlook for 2011: Target EBITDA margin of 20 %

Holzminden, August 10, 2011 (euro adhoc) - Symrise AG increased sales
and maintained profitability at a high level in the first half of
2011. The Group increased sales by about 3 % at local currency
despite the strong comparables from the previous year; it benefited
from business with major customers and Emerging Markets. However, the
market environment turned gloomy in certain segments and regions in
the second quarter. Earnings were affected by high raw material costs
and negative currency effects. Nonetheless Symrise achieved an EBITDA
margin of 20 %. The primary contributors were persistent cost
management and the conscious divestment of less profitable
businesses.

Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG,
said: "Following the enormous catch-up effect during the previous
year and a good first quarter, market growth slowed in the recent
months. Whereas the flavor business continued to grow, the demand for
fragrances declined. Nonetheless, Symrise continued to grow
throughout the first half of the year. We achieved the targeted
EBITDA margin of 20 %. We consider this to be a respectable
achievement in view of the continually high raw material prices and
unfavorable exchange rate effects."

Bertram added: "Our statement from the first quarter that consumer
spending is being affected by uncertainties on global markets still
holds true. Despite the somewhat subdued outlook we are striving to
achieve sales growth of around 3 % and an EBITDA margin of 20 % for
the full year 2011. The fundamental drivers of our business will
remain intact in the mid-term. We are therefore continuing to pursue
our strategy of focusing on innovation, Emerging Markets and major
customers."

Continued above-average growth in Emerging Markets

In the first six months of the current financial year Symrise posted
an increase in Group revenues of approximately 2 % to EUR 811.8
million (previous year: EUR 797.5 million). The sales increase was
2.6 % at local currency. The Asia/Pacific region exhibited the
strongest growth followed by Latin America and EAME. Emerging Markets
did not continue their extraordinarily high growth rate of the
previous year, but continued to grow above average in H1. Sales
generated in Emerging Markets as a whole rose 4 % and accounted for
46 % of Group sales.

The Asia/Pacific region reported 5 % sales plus (4 % at local
currency). Both divisions benefited from continuous high demand.
Latin America, which grew quite strongly during the prior year
period, continued to grow but at a more moderate rate. This region
achieved a 4 % sales increase (4 % at local currency). Sales in EAME
rose 3 % (3 % at local currency), whereby business in Western Europe
made a strong contribution. North American sales declined 7 % over
the strong results of the previous year, primarily due to the slower
economy and significant currency effects. At local currency, revenues
declined by 2 %.

Both divisions grew business with major customers

The strategic focus on business with internationally active food and
consumer goods companies in the first half of the year paid off
again. Both divisions benefited from their good core list positions;
and grew business with top ten customers above average: Flavor &
Nutrition realized top 10 customer sales growth of 6.5 % and Scent &
Care of 3.4 %. In the first six months 2011 Symrise generated about
30 % of Group sales from business with its major customers.

Strong profitability despite pressure from raw material costs and
currency effects

In the first half of the year Symrise´s earnings picture was
primarily affected by high raw material costs and currency effects.
Initial price increases helped to compensate for these negative
factors and Symrise nonetheless met its EBITDA margin target of 20 %
(previous year: 22.3 %). Persistent cost management and focus on
business with attractive margins significantly contributed to keep
profitability at a high level. In absolute terms, earnings before
interest, tax, depreciation and amortization (EBITDA) declined by 8.6
% to EUR 162.5 million (previous year: EUR 177.7 million).

Net income for the period amounted to EUR 77.4 million (previous
year: EUR 88.8 million). This corresponds to earnings per share of
EUR 0.65 (previous year: EUR 0.75).

Strategic raw material inventory give more planning security

In the first half of 2011 Symrise temporarily built up inventory of
raw materials in a move to cushion price increases and shortages of
certain raw materials. The Group believes that increased inventory
levels will give significantly more planning security in the second
half of the year. Despite increased working capital requirements
Symrise generated a positive cash flow from operating activities of
EUR 34 million (previous year: EUR 74.7 million).

The Group´s net debt (incl. pension provisions) as of June 30, 2011
was EUR 798.8 million (December 31, 2010: EUR 733.7 million). The
ratio of net debt (incl. pension provisions) to EBITDA amounted to
2.5 at the end of the reporting period (December 31, 2010: 2.2).

Scent & Care

Scent & Care generated sales of EUR 409.5 million in the first half
of the year (previous year: EUR 411.9 million). The division´s sales
remained largely stable even in comparison to the strong catch-up
effect that characterized the previous year and despite the
divestment of less profitable businesses. At local currency sales
slightly rose by 0.3 %.

The application segments Life Essentials and Aroma Molecules
continued their positive development, especially in the area of
fragrance ingredients. The menthol business of Scent & Care enjoyed
double-digit growth. The Group has made significant investments and
is currently expanding production capacity here. In the application
area Fine Fragrances demand developed positively in Emerging Markets.

Latin America remained the fastest-growing region for Scent & Care
with a sales increase of 5 % at local currency. In Asia/Pacific and
North America sales rose 1 % at local currency. Sales in the EAME
region declined 2 % at local currency over the extraordinarily strong
previous year.

The division reported an EBITDA of EUR 76.9 million (2010: EUR 85.5
million) for the first half of the year. The EBITDA margin was 18.8 %
(previous year: 20.7 %).

Flavor & Nutrition

Flavor & Nutrition continued its growth path in the first half of
2011 with a 4 % sales increase to EUR 402.3 million (previous year:
EUR 385.6 million). This corresponds to 5 % at local currency.

Flavor & Nutrition posted the largest sales increase of 8 % (at local
currency) in the EAME region. Here Symrise benefited from the high
demand in all national markets. Beverage applications in particular
developed positively as did the new application segment Consumer
Health. Asia/Pacific was the second strongest region with sales
growing by 7 % at local currency. In Latin America Flavor & Nutrition
increased sales by 3 % at local currency despite the strong previous
year figures. In North America the slow economic environment and
customer procurement delays led to a sales decline of 6 % at local
currency.

The EBITDA amounted to EUR 85.6 million (previous year: EUR 92.2
million). The profitability of the division remained at a high level
with an EBITDA margin of 21.3 % (previous year: 23.9 %).

Outlook: Symrise continues to target an EBITDA margin of around 20 %

Following the more restrained business development in the second
quarter, Symrise anticipates that the business in the coming months
will continue to be influenced by macroeconomic uncertainties such as
the debt crises in Europe and the USA, inflationary tendencies and
growing interest rates in Emerging Markets. This could lead to
greater volatility with respect to demand.

Nonetheless, Symrise is targeting sales growth of around 3 % for the
current year. Stable growth in the Flavor & Nutrition division is
expected to be a primary contributor here, while the Scent & Care
division is not expected to experience any noteworthy growth in 2011
for reasons which include the conscious divestment of less profitable
businesses.

Symrise wants to remain amongst the most profitable companies in the
sector and therefore targets an EBITDA margin of around 20 % for the
current financial year. Symrise anticipates that raw material prices
will remain at a high level and that exchange rates will continue to
be volatile in the second half of the year. Approved price increases
and persistent cost discipline should support Symrise in achieving
its objectives for fiscal year 2011.

in EUR millions H1 2010 H1 2011 Change in% Change in% LC
Sales 797.5 811.8 1.8 2.6
EBITDA 177.7 162.5 -9 -8
EBITDA margin in% 22.3 20.0 - -
EBIT 133.7 120.7 -10 -9
EBIT margin in% 16.8 14.9 - -
Net income for period 88.8 77.4 -13
Earnings per share in EUR 0.75 0.65 -13
Cash flow from
operating activities 74.7 34.0

DIVISIONS
Scent & Care
Sales 411.9 409.5 -0.6 0.3
EBITDA 85.5 76.9
EBITDA margin in% 20.7 18.8 - -

Flavor & Nutrition
Sales 385.6 402.3 4.3 5.1
EBITDA 92.2 85.6
EBITDA margin in% 23.9 21.3 - -

31.12.10 30.06.11
Balance sheet total 2,059.0 2,044.5
Equity ratio 40.9 40.1
Ratio of net debt
(incl. pension provisions)/EBITDA 2.2 2.5
Employees / FTE¹ 5,288 5,474

¹ Excluding apprentices and trainees, FTE = Full Time Equivalent (full-time
employees)

LC= at local currencies

About Symrise

Symrise is a global supplier of fragrances, flavorings and raw
materials as well as active ingredients for the perfume, cosmetics
and food industry. Its sales of EUR 1.57 billion in 2010 place the
Company among the top four in the international flavor and fragrance
market. Headquartered in Holzminden, Germany, Symrise is represented
in more than 35 countries in Europe, Asia, the United States and
South America.Used by manufacturers of perfumes, cosmetics and foods,
our innovative products are an inseparable part of daily life. At
Symrise we combine an awareness of consumer trends with cutting-edge
technologies, focusing on developing innovative fashion and lifestyle
products that have additional practical value for the consumer.
Symrise - always inspiring more… www.symrise.com

Further inquiry note:
Contact Press: Contact Investors:
Bernhard Kott Tobias Erfurth
phone +49 (0)5531 90-1721 phone +49 (0)5531 90-1879
bernhard.kott@symrise.com tobias.erfurth@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: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover, München
language: English