Symrise AG

XETRA:SY1

Earnings Call Transcript 2021-Q4

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Here we

go.

Good

afternoon

or

good

morning,

ladies

and

gentlemen.

Welcome

to

the

Presentation

of

the

Symrise

2021

Full Year

Results.

With

me

in

this

conference

call are

our

CEO,

Dr.

Heinz-Jürgen

Bertram;

and

our

CFO,

Olaf

Klinger.

The

ongoing

corona

pandemic

has

unfortunately

kept

us

again

from

hosting

this

event

in-person

in

Frankfurt,

but

we

are

happy

to

have

you

in

this

virtual

format

instead.

We

will

go

through

our

results

and

provide

an

outlook

on

the

current

year

from

our

headquarters

here

in

Holzminden.

You

will,

of

course,

also

have

the

opportunity

to

ask

questions

during

the

Q&A

session,

following

the

presentation.

All

documents

have

been

published

on

our

webpage

this

morning

in

the

section,

Investors

at

Financial

Results.

You

can

also

find

the

recording

of

this

session

later

today.

I

will

now

hand

over

to

our

CEO,

Dr.

Heinz-Jürgen

Bertram.

Please

go

ahead.

[Heinz-Jürgen Bertram]

Thank

you,

Tobias.

Good

morning,

ladies

and

gentlemen,

and

welcome

also

from

my

side.

I

am

delighted

that

so

many

of

you

have

taken

the

time

to

join

our

call

today.

I

will

begin

with

the

highlights

of

2021.

Olaf

will

then

provide

a

deep

dive

into

the

financials

before

I

conclude

with

our

key

strategic

initiatives

and

an

outlook

for

the

road

ahead.

Let us

have

a

look

at

chart

4.

The

year

2021

was

clearly

marked

by

a

strong

economic

recovery

from

the

effects

of

the

global

coronavirus

pandemic.

The

improved

situation

led

to

fewer

restrictions.

The

social

life

gained

good

momentum

again.

However,

particularly

since

the

second

half

of

the

year,

the

economy

has

been

facing

persistent

bottlenecks

in

supply

chains.

Rising

inflationary

effects

and

higher

raw

material

prices

intensified

the

pressure

on

economies

worldwide.

As

other

players,

Symrise

was

also

influenced

by

these

factors.

But

we

successfully

capitalized

on

returning

demand

and

continued

our

profitable

growth

course

despite

some

headwinds.

Our

diversified

portfolio

and

our

backward

integration

have

been

decisive

factors

for

success.

We

are,

therefore,

looking

at

an

all-around

very

satisfactory

year

2021.

We

grew

sales

by

around

9%

to

over

€3.8

billion.

Organic

growth

was

even

stronger

at

almost

10%.

EBITDA

increased

by

9.6%

to

€814

million

and

our

profitability

remained

at

a

high

level

of

21.3%.

The

business

free

cash

flow

amounted

to

€486

million

and

equals

about

13%

of

sales.

Net

income

grew

by

more

than

20%

to

€375

million,

which

corresponds

to

€2.74

per

share.

Our

dividend

proposal

amounts

to

€1.02

per

share

for

fiscal

year

2021.

This

proposal

represents,

ladies

and

gentlemen,

the

12th

consecutive

dividend

increase.

Let

me

conclude

the

snapshot

with

one

more

highlight,

our

DAX

membership.

After

14

years

in

the

German

MDAX,

we

have

become

member

of

the

leading

German

index

last

September.

Our

share

gains

even

more

visibility

and

interest

amongst

shareholders

now.

Taking

a

look

at

our

sales

growth

on

chart

5.

Group

sales

increased

to

over

€3.8

billion,

including

€40

million

of

Sensient

Fragrances,

which

we

had

acquired

last

year.

Organically,

the

group

achieved

even

stronger

growth

of

9.6%,

driven

by

both

segments

and

all

regions.

We

not

only

exceeded

our

sales

forecast,

which

we

had

raised

twice

last

year,

but

also

outperformed

market

growth.

In

both

segments,

we

observed

normalization

in

consumer

behavior

and

increased

demand,

which

page

6

illustrates.

Taste,

Nutrition

&

Health,

our

renamed

segment,

which

resulted

from

the

combination

of

our

two

former

Flavor

and

Nutrition

segments,

generated

sales

of

€2.3

billion.

Organic

growth

amounted

to

an

excellent

10.6%.

The

renewed

out-of-home

consumption

boosted

demand,

particularly

for

beverage

applications.

A

strong

growth

driver

was

once

again

our

Pet

Food

business,

which

grew

in

the

double-digit

percentage

range.

Our

Scent

&

Care

segment

also

performed

extremely

well.

Sales

rose

by

8.9%

to

around

€1.5

billion

and

organic

growth

came

to

7.9%,

driven

by

all

application

areas.

Fine

Fragrances

and

Cosmetic

Ingredients

particularly

benefited

from

the

resumption

of

travel.

Coming

to

our

regions

where

we

also

have

a

very

good

news

to

share

on

chart

7.

We

grew

across

all

regions

with

Latin

America

being

the

strongest

one

and

delivering

organic

growth

of

13.5%.

Asia

Pacific

achieved

organic

growth

of

10.3%.

EAME and

North

America

generated

very

good

organic

growth

rates

of

8.8%

and

8.5%,

respectively.

Symrise

is

sustainable

in

more

than

one

respect.

We

stand

for

sustainable

operations

and

sourcing.

We

also

stand

for

a

very

sustainable

financial

performance,

as

you

can

see

on

chart

8.

Since

our

IPO

in

2006,

we

delivered

an

annual

compounded

growth

of

around

8%.

Our

EBITDA

CAGR

amounts

to

an

excellent

8.4%

and

our

profitability

is

on

a

constantly

high

level.

We're

creating

value

every

single

year.

This

makes

us

very

proud.

And

I

would

like

to

thank

all

our employees

worldwide

for

their

tireless

work,

commitment

and

dedication.

As

chart

9

shows,

our

share

price

has

also

performed

very

well

gaining

more

than

20%

in

2021.

We

outperformed

both MDAX and DAX

and

consider

this

a

confirmation

of

our

attractiveness.

But

it

also

reflects

the

trust

investors

have

in

our

strategy

and

long-term

prospects.

It

is

part

of

our

Investor

Relations

philosophy

to

have

our

shareholders

participate

in

Symrise's

success.

The

management

and

supervisory

board

will,

therefore,

propose

a

2021

dividend

of

€1.02

per

share.

This

proposal

represents

the

12th

consecutive

dividend

increase

and

is

another

indicator

for

our

commitment

to

long-term

value

creation.

Let

me

pause

here

and

turn

to

Olaf.

He

will

now

provide

the

details

on

our

financials.

Olaf?

[Olaf Klinger, Chief Financial Officer, Symrise AG]

Yeah,

thank

you

very

much,

Heinz-Jürgen,

and

also

warm

welcome

from

my

side.

Let

me

start

straight away

with

our

sales

development

on

group

level

on

slide

11.

We

achieved

strong

organic

growth

of

9.6%,

which

is

far

above

market

growth.

But

not

only

that,

we

also

outperformed

our

guidance

of

average

annual

organic

sales

growth

between

5%

and

7%.

It

is

particularly

important

to

note

that

sales

growth

was

driven

by

volume,

not

price.

This

will

change

in

the

current

year

towards

substantially

more

contribution

from

price.

Going

through

major

events

this

year,

Q1

was still

characterized

by

the

cyber-attack

that

hit

us

at

the

end

of

2020.

We

recovered

within

weeks

and

caught

up

the

vast

majority

of

the

missed

turnover

quickly.

Special

thanks

go

to

our

clients

and

partners

for

their

support

and

our

Symrise

colleagues

for

their

extra

effort

to

recover

our

IT

system

environment

in

an

accelerated

mode.

Throughout

the

year,

global

consumer

demand

caught

up

immensely.

Travel

activity

and

the

leisure

sector

particularly

benefited,

which

drove

the

need

for

cosmetic

applications

and

beverage

solutions.

Also,

our

Pet

Food

activities

performed

extraordinarily

well,

supported

also

by

ADF/IDF,

which

we

acquired

back

in

2019,

and

which

continues

to

perform

well

ahead

of

our

initial

expectations.

The

performance

of

the

Sensient

Fragrance

acquisition

was

fully

in

line

with

our

initial

expectations.

The

business

contributed

sales

of

€41

million

and

in

addition

to

acting

as

internal

raw

material

supplier.

In

terms

of

FX,

we

had

negative

effects

of

€73

million

for

the

full

year,

but

positive

sales

impact

on

€20

million – of

€23

million

in

Q4.

For

2022,

we

expect

FX

tailwind

that

will

support

our

reported

top

line

as

well

as

our

group

sales

target

of

€4

billion

to

€4.5

billion,

which

we

gave

in

2019

for

the

year

2022.

We

are

fully

on

track

to

deliver

on

our

mid-term

ambitions.

On

to

our

profitability

on

slide

12.

Gross

margin

amounted

to

38.7%

compared

to

39.5%

in

2020.

The

development

is

linked

to

higher

manufacturing

costs

and

increased

raw

material

expenses

with

an

inflation

of

about

1.2%

last

year.

Our

P&L

has

been

impacted

by

a

few

extraordinary

items.

We

experienced

M&A-related

transaction

cost

of

€8.7

million,

positive

one-off

items

came

from

the

sale

of

the

color

business

with

plus

€12.5

million

and

from

the

favorable

book

value

of

the

Sensient

Fragrance

acquisition

with

plus

€20.8

million.

Please

keep

in

mind

that

the

substantial

benefit

from

the

book

value

is

connected

to

an

initially

low

profitability

of

the

acquired

Sensient

Fragrance

business.

EBITDA

grew

by

9.6%,

also

supported

by

lower

travel

and

R&D

costs.

Our

EBITDA

margin

increased

to

21.3%

after

an

already

strong

level

of

21.1%

the

year

before.

While

depreciation

increased

moderately,

amortization

decreased

by

around

€4

million,

mainly

due

to

the

end

of

the

amortization

period

of

IT

software

solutions.

As

a

consequence,

our

EBIT

rose

over

proportionally

by

14.7%

and

our

EBIT

margin

reached

a

solid

level

of

14.6%

compared

to

13.8%

in

2020.

Let

us

now

look

into

the

segments,

starting

with

Taste,

Nutrition

&

Health

on

slide

13.

The

segment

successfully

leveraged

returning

consumer

preferences

and

achieved

an

organic

grow –

sales

growth

of

10.6%.

We

saw

an

exceptional

upturn

in

beverage

solutions,

followed

by

double-digit

growth

in

Pet

Food

activities.

EBITDA

grew

by

12.9%

or

€60

million

to

€531

million. The

segment

increased

its

EBITDA

margin

to

22.7%

and

operated

highly

profitable

despite

higher

costs.

Our

strategy

to

invest

into

faster

growing

and

more

profitable

businesses

starts

to

pay

off.

In

addition,

initial

steps

to

increase

prices

were

successfully

taken.

On to

Scent

&

Care

on

slide

14,

Scent

&

Care

achieved

organic

sales

growth

of

7.9%.

Main

growth

drivers

were

Fine

Fragrances

and

Cosmetic

Ingredients,

which

both

benefited

from

the

normalization

of

consumer

behavior

and

experienced

an

excellent

upswing

after

the

sharp

decline

in

2020.

Aroma

Molecules

was

supported

by

strong

demand

and

further

capacities

for

menthol

built

during

the

recent

years.

Consumer

Fragrances

and

Oral

Care

achieved

single-digit

sales

growth

following

exceptional

high

levels

in

the

prior

year.

EBITDA

in

Scent

&

Care

increased

by

4.1%

or

€11

million

to

€283

million.

The

margin

totaled

19%

compared

to

19.8%

the

year

before.

The

decline

was

mainly

due

to

a

below

average

operational

margin

at

Sensient

Fragrances,

increased

raw

material

costs

and

higher

manufacturing

costs.

During

the

second

half

of

the

year,

Scent

&

Care

experienced

higher

costs

related

to

increased

logistics,

energy

as

well as

packaging

costs.

While

price

increase

initiatives

were

taken

early

on

in

the

second

half

of

last

year,

the

effect

will

mostly

come

in

starting

this

year

due

to

the

nature

of

customer

contacts,

especially

in

Aroma

Molecules

and

Cosmetic

Ingredients.

Turning

now

to

the

financial

result and

bottom

line

on

slide

15.

The

financial

result

improved

by

around

€21

million

and

reflects

generally

lower

financing

costs

in

2021.

In

addition,

we

had

a

one-off

effect

payment

to

tax

authorities

during

the

year

before.

At

the

Capital

Markets

Day

in

January

2019,

I

gave

a

tax

guidance

of

26%

to

28%.

Since

our

tax

rate

developed

well

and

further

decreased

from

25.6%

to

25.4%

last

year,

I

would like

to update

our tax

guidance

to now

25%

to

27%

for

the

coming

years.

Our

bottom

line

grew

by

more

than

20%

to

€375

million.

EPS

reached

a

new

all-time

high

at

€2.74.

It

is

also

to

be

kept

in

mind

that

the

number

of

shares

increased

because

of

the

conversion

of

the

convertible

bond

into

new

shares

in

September

last

year.

Please

take

note

that

the

EPS

is

calculated

based

on

a

weighted

average

number

of

shares

last

year.

As

stated

by

Heinz-Jürgen,

management

and

supervisory

board

will

propose

a

dividend

increase

to

€1.02

per

share.

Let's

continue

with

our

business

free

cash

flow

on

slide

16.

The

level

for

2021

remained

below

the

high

levels

of

the

previous

two

years

despite

strong

EBITDA

growth

for

three

reasons.

First,

2021

was

a

year

of

important

investments.

We

spent

€174

million,

including

some

strategic

growth

initiatives.

Second,

we

increased

working

capital

as

a

result

of

the

cyber-attack

in

late

2020,

as

well as

strategic

inventories

to

maneuver

risk

and

the

global

supply

chain.

And

third,

with

a

higher

level

of

trade

receivables

due

to

the

strong

growth

in

sales.

Despite

the

strong

earnings

growth,

business

free

cash

flow

settled

at

12.7%

of

sales.

For

2022,

we

are

optimistic

to

reach

a

level

of

around

14%

of

sales

again.

Moving

on

to

net

debt

development

on

slide

17.

With

the

increase

in

capital

and

further

reduction

of

debt,

net

debt,

including

pensions

and

leasing

obligations,

totaled

2.4

times

EBITDA

as

of

December

31.

For

2022,

we

expect

a

slightly

higher

leverage

ratio

of

2.5

to

2.7

times,

driven

by

recent

and

further

expected

M&A

activities.

Our

top

priority

still

remains

to

be

an

investment-grade

profile.

Taking

a

closer

look

at

the

balance

sheet

on

slide

18.

Investments

and

acquisitions

increased

property,

plant

and

equipment

as

well as

intangibles.

The

increase

in

other

assets

results

from

the

participation

in

Swedencare.

In

August,

we

decided

to

redeem

our

€400

million

convertible

bond

really

by

conversion

into

new

shares.

Our

equity

increased

by

€890

million

to

€3,252

million.

Next

to

the

conversion

of

the

convertible,

we

benefited

from

positive

FX

translation

differences

of

around

€170

million,

as

well as

an

increase

in

accumulated

profit

and

other

reserves

of

around

€276

million.

Our

equity

ratio,

therefore,

closed

the

year

at a

very

healthy

level

of

49%.

All

in

all,

we

enjoyed

another

successful

year

with

profitable

growth

at

Symrise,

once,

again,

confirming

the

resistance

of

our

business

model

in

challenging

times.

And

after

this

financial

deep

dive,

I

now

hand

back

to

Heinz-Jürgen.

[Heinz-Jürgen Bertram]

Thank

you,

Olaf.

Ladies

and

gentlemen,

let

us

look

at

the

strategic

initiatives.

They

have

supported

our

performance

in

2021

and

which

will

bear

further

fruit

going

forward.

Chart

20

illustrates

our

new

corporate

structure

and

gives

background

to

establish

the

Taste,

Nutrition

&

Health

segment.

We

have

decided

to

bundle

the

Flavor

&

Nutrition

competencies

and

build

a

global

powerhouse

around

Taste,

Nutrition

&

Health,

three

assets

which

are

closely

tied

together.

With

an

expanded

portfolio,

we

are

in

an

even

better

position.

First,

to

serve

the

needs

of

our

customers

with

sustainable

and

innovative

products

and

solutions.

Second,

to

tackle

promising

new

markets.

And

third

to

further

increase

our

competitiveness

through

unique

capabilities.

M&A

have

traditionally

been

important

elements

for

differentiation

and

growth.

Please

have,

therefore,

a

look

at

page

21.

For

example,

Canadian

Giraffe

Foods,

the

company

will

strengthen

our

food

business

via

customized

taste

concept

and

make

us

a

leading

provider

of

integrated

food

solutions

in

North

America.

Pet

Food

is

a

key

driver

for

our

portfolio

and

our

growth,

and

we

even

want

to

expand

our

position

as

the

leading

international

supplier

for

pet

food

solutions.

We

acquired

a

minority

stake

in

Swedencare

and

aim

to

strengthen

our

knowledge

of

veterinary

products

supporting

the

well-being

of

pets.

The

Dutch

company,

Schaffelaarbos

is

an

excellent

example

for

expanding

our

position

in

egg-based

proteins.

As

you

all

know,

APAC

has

traditionally

been

a

highly

promising

region

for

us,

and

with

the

acquisition

of

Chinese

Wing

Pet

Food,

we

just

announced

a

few

days

ago,

we

intend

to

further

increase

our

footprint

in

pet

food

in

the

region.

At

the

same

time,

we

stopped

activities.

The

core

business

no

longer

includes

the

food

color

applications,

which

we

sold

to

Oterra,

as

well

as

the

Drinkstar Velcorin

activities.

In

the

Scent

&

Care

segment

too,

the

wheels

have

not

stood

still,

as

you

can

see

on

chart

22.

We

have

reorganized

our

regional

presence

and

expanded

our

portfolio

through

targeted

acquisitions

and

strategic

partnerships.

I

want

to

highlight

three

here.

With

Sensient,

we

have

strengthened

our

Fragrance

and

Aroma

Molecules

business.

As

part

of

this

acquisition,

we

also

acquired

the

Sensient

site

in

Granada.

It

will

become

an

important

European

hub

for

our

Scent

&

Care

business.

Two

more

important

steps

have

been

realized

with

a

minority

interest

in

US-based

Kobo

Beauty,

Inc.

and

a

cooperation

agreement

with

the

US

startup,

Infinite

Looks.

Both

demonstrate

our

efforts

to

further

expand

our

portfolio

in

attractive

business

and

product

areas,

namely

UV

protection,

decorative

cosmetics

and

hair

care. These

acquisitions

and

divestments

show

our

clear

commitment

to

continuously

improve

our

portfolio

and

make

Symrise

a

unique

player.

Sustainability

is

and

always

has

been

an

integral

part

of

our

strategy.

For

this,

please

see

chart

23.

Our

approach

is

fully

aligned

with

the

UN

sustainability

goals

and

embedded

in

all

our

operations

from

sourcing

thousands

of

raw

materials

from

all

over

the

world

to

the

production

process

to

delivery

to

the

customer.

We

let

ourselves

be

measured

by

a

number

of

KPIs.

And

it

is

our

clear

goal

to

become

climate

positive

by

2030.

Our

commitment

to

climate

protection

is

already

recognized

today.

For

example,

by

the

Carbon

Disclosure

Project,

Symrise

was

awarded

triple A

status

for

the

second

consecutive

year

in

a

row

in

all

three

categories

water,

climate,

as

well

as

forest.

We

are

the

only

company

in

Germany

and

1

of

only

14

worldwide

with

that

status.

Investments

pave

the

way

to

growth

in

the

future.

Chart

24

highlights

some

selected

projects,

which

comprise

investments

into

new

capacities,

as

well

as

R&D.

We

have,

for

example,

built

a

new

site

for

our

Pet

Food

division

in

China

and

set up

a

new

innovation

center

in

Dubai.

On

the

R&D

side,

we

have

put

a

particular

focus

on

innovations.

For

instance,

the

launch

of

SymProBiome,

which

is

a

new

model

for

microbiome-based

research. And

in

the

area

of

advanced

technologies,

we

have

invested

in

a

very

exciting

digital

tool

to

improve

traceability

of

global

farming.

It

allows

us

to

collect

structure

and

coordinate

agronomic

data

from

around

the

world.

I

want

to

conclude

today's

presentation

with

the

outlook

for

this

year,

on

page

25.

Following

the

strong

recovery

in

2021,

experts

estimate

that

the

global

economy

will

grow

more

moderately

this

year.

In

addition,

I

am

sure

this

is

not

a

surprise

to

you.

We

expect

an

increase

in

selective

raw

material

and

energy

prices.

Also,

the

crisis

in

the

Ukraine

and

the

impact

for

all

of

us

cannot

be

foreseen

today.

However,

we

are

confident

that

we

are

very

good

positioned

to

continue

our

profitable

growth

course.

Our

robust

business

model

with

its

diversified

portfolio,

our

far-reaching

international

presence

and

broad

customer

base

give

us

tailwind.

For

2022,

we

are

targeting

organic

growth

of

5%

to

7%

in

line

with

our

mid-term

guidance.

Despite

headwinds

from

raw

material

and

energy

prices,

we

aim

at

an

EBITDA

margin

of

around

21%.

Ladies

and

gentlemen,

thank

you

for

your

attention.

I

would

now like

to

open

the

call

for

your

questions.

Tobias?

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Many

thanks,

Heinz-Jürgen.

And

many

thanks,

Olaf.

Turning

to

Q&A,

we

are

now

happy

to

take

the

questions

from

the

audience.

And

the

first

question

comes

from

Lisa

De

Neve

from

Morgan

Stanley.

Lisa,

please

go

ahead.

[Lisa H. de Neve, Analyst, Morgan Stanley & Co. International Plc]

Hi,

good

afternoon,

and

thank

you

for

taking

my

question.

I

have

two.

So

the

first

one

is

on

the

EBITDA

margin.

You are

guiding

to

about

21%

margin

at

this

point

in

time

of

the

year

for

2022.

So can

you

please

share

just

sort of

building

blocks

that

underpin

that

guidance,

especially

as it

relates

to

raw

material

inflation,

degree

of

pricing,

synergies

you

may

expect?

And

maybe

also

on

the

adjusted

versus

reported

line,

any

sort

of

integration

or

startup

costs

we

should

calculate

or

take

into

account?

That

would

be

super

helpful.

[Heinz-Jürgen Bertram]

So,

Lisa, and

I

start,

and

I

would

say,

Olaf,

you

take

the

mix

of

price

increases

and

volume

and

all

this

stuff.

So

one

point,

which

I

just

stressed

is,

we

have

consequently

improved

and

managed

our

portfolio.

So

assets,

which

were

not

core

business

anymore

or

which

were

dilutive

on

our

margin,

we

sold.

And

we

have

consequently

looked

for

business

areas

with

a

better

business

perspective,

and

if

possible,

even

an

accretive

business

bottom

line

contribution.

Olaf?

[Olaf Klinger, Chief Financial Officer, Symrise AG]

Yeah.

So

from

our

perspective,

the

EBITDA

margin

is

supported

by

price

increases

which

we

started

last

year

quite

a

little

bit.

We

are

seeing

them

coming

in.

So

the

5%

to

7%

growth

guidance

for

this

year will

incorporate a

substantial

amount

of

price

here.

That's

one

driver.

The

second

driver

I

would

highlight

is,

again,

the

strong

development

of

our

portfolio

into

fast

growing,

high

margin

businesses.

I

think

we

have

seen

a

few

acquisitions

in

the

last

few

months,

and

all

of

them

will

be

accretive.

And

therefore,

the

mix

in

this

regard

will

further

improve

our

profile.

So

the

diversification

of

the

group

continues

in

this

regard

and

supports

well

the

margin

expectation.

[Lisa H. de Neve, Analyst, Morgan Stanley & Co. International Plc]

Can

I

just

follow

up a

little

bit

on

the

raw

materials

and

the pricing

specifically?

Can

you just

share

what

you are

seeing

on

the

raw

material

landscape

in

terms

of

the

degree

of

raw

material

inflation

you are

expecting

for

this

year?

And

to

which

extent,

you've

been

able

to

renegotiate

that

via

pricing

on

the

top line?

How

should

we

think

about

pricing

versus

raw

materials

this

year

and

sort of

the

timeline

that's

lapping

that

if

that's

what's

going

to

happen?

Thank

you.

[Heinz-Jürgen Bertram]

So

I

will

start,

Olaf,

and

you

hop

in

if

you

feel

there is

something

more

to

be

added.

As

what

we

said

beginning

of

last

year,

we

expected

for

last

year

1%

to

2%

price

increases.

And

for

last

year,

we

saw

a

bit

more,

say,

than

2%,

but

around

the

guidance

we

gave

at

the

beginning

of

last

year

was

correct,

with

the

caveat

that

most

of

the

price

increases

of

last

year

happened

in

the

last

quarter.

And

so

happened

it

this

year,

we

saw

a

steep

price

increase

in

the

beginning

of

this

year.

We

expect

about

6%

on

top

of

it.

So

that

brings

us

to,

say,

in

total,

8%,

and

we

discussed

it

last

year

already.

We

had

started

in

time

to

pass

on

price

increases

for

the

products.

And

as

per

now,

we

feel

well-equipped

that

we

have

managed

to

pass

on

most

of

our,

if

not

all

of

the

price

increases

to

the

customers.

As

Olaf

has

said,

not

all

of

these

price

increases

which

we

pass

through

have

been

materializing

yet

because

some

of

the

contracts,

in

particular,

in

the

Aroma

Molecules

area,

but

also

in

Flavors

and

Fragrance

are

still

valid.

And –

but

in

the

next

weeks

or

month,

these

price

increases

will

come

through.

So

of

course,

the

situation

is

not

always

clear

and

visible

to

us

how

it

continues

to

develop.

But

as

per

now,

we

feel

confident

that

we

have

been

able

to

pass

on

the

price

increases

or

that

these

price

increases

will

go

through

within

the

next

weeks.

Olaf, if

you

want

to

add

a

bit

more?

[Olaf Klinger, Chief Financial Officer, Symrise AG]

No,

I

think

you

said

it.

And

keep

in

mind,

I

mean,

we

have a

raw

material

base

of

10,000

raw

materials.

So

across

this

portfolio,

you

see,

of

course,

different

elements

coming

through.

And

some

price

increases

have

been

extremely

substantial,

like

in

Aroma

Molecules,

very

substantial

double-digit

numbers

we

needed

to

take.

Similar

in

Pet

Food,

we

had

substantial

price

increases

initiated

last

year.

So

across

the

portfolio, it

will

come

through

in

different

magnitudes.

We

said

in

the

past

three

to

six

months,

it

takes

us

normally

to

[ph]



pass

the

two (32:35).

Maybe

this

year, it

might

be

a

little

bit

longer

because

the

increases

continue,

and

we

need

to

see

how

we

play

this

out.

But

no

worry

at

the

moment

on

our

end

that

we

will

not

be

successful

in

protecting

our

margin

environment.

[Heinz-Jürgen Bertram]

And one

key

message

which

I

would

like

to

highlight

in

addition

to

what

Olaf

said,

we

benefit

from

the

best

backward

integration

in

our

industry.

And

in

times

when

we

have

crisis,

then

we

typically

benefit

from

this.

And

in

this

time,

it

again

shows

the

value

of

our

business

model,

and

that's

why

we

are

confident

for

this

year

as

well.

[Lisa H. de Neve, Analyst, Morgan Stanley & Co. International Plc]

Thank

you

very

much,

guys.

[Heinz-Jürgen Bertram]

You're

welcome.

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Well,

thank you

very

much,

Lisa.

Next

question

comes

from

Matthew

Yates

from

Bank

of

America

please.

[Matthew Yates, Analyst, BofA Securities]

Hey.

Good

morning,

gentlemen.

Couple

of questions.

First

one,

maybe,

for Olaf,

just

around

the

CapEx,

4.5%

of

sales.

Is

that

actually

enough

to

keep

up

with

demand?

Conscious

you

just

had

a

year

of

almost

10%

volume

growth. Are

you

running

up

against

any

sort

of

capacity

constraints

that

need

to

be

alleviated?

And

maybe

a

second

question, a

bit broader, for

Heinz-Jürgen

around

Pet

Food

business.

Am

I

right

in

thinking

you are

outgrowing

the

end

market?

And

if

so,

can

you help

me

better

understand

who

you are

taking

share

from?

Is

that

the

big

pet

multinationals

increasingly

outsourcing

some

of

the things

that

they've

previously

done

in-house?

Or

is

your

technology

really

extending

your

lead

over

some

of

the

Tier 2

players?

And

I

guess

over

the

midterm,

you've

done

some

interesting

M&A

recently

to

move

deeper

into

certain

geographies

and

adjacent

products

like

health.

Just

how

big

do

you

think

this

pet

business

could

be

for

you

in

three

to

five

years'

time?

Thank

you.

[Heinz-Jürgen Bertram]

Yeah.

Matthew,

thanks

for

the

question.

So

first,

the

CapEx

at

the

moment,

it

was

4.5%,

which

is

industry

average.

But

you

may

bear

in

mind,

we

had

already

times

where

we

exceeded

7%.

So

you

see

from

there,

we

invest

whatever

is

necessary,

whatever

permits

our

growth.

And

going

forward,

I

believe,

Olaf,

you

gave

the

guidance

for

this

year

5%,

maybe

a

bit

more.

But

Matthew,

we

benefit

also

from

the

massive

investments

we've

done

over

the

last

few

years

and

to

improve

capacity,

it

shows

that

obviously

this

was

exactly

the

right

thing

to

do.

And

there

is

no

reason

to

be

concerned

that

2 points

–

4.5%

cuts

back

on

capacity

or

leads

us

to

capacity

increase

constraints.

We

are

very

confident

that,

first,

we

have

a

portfolio

which

is

future

oriented,

where

there

is

a

bright

future

ahead.

And

we

will

continue

to

invest

whatever

is

necessary.

And

in

that

respect,

we are

very

positive

4.5%,

which

we

did

last

year.

That

is

industry

standard

and

benchmark

is

typically

that

we

tend

to

have

a

slightly

higher

capacity

CapEx

level.

For

this

year,

we

expect,

as

I

said,

a

bit

more

than

5%,

but

no

reason

to

be

concerned

at

all

in

that

respect.

Pet

Food,

market

growth,

here,

we

see

a

strong

organic

growth

momentum.

We

may

take

market

share

from

smaller

players,

which,

frankly,

we

don't

know

exactly.

However,

what

it

shows

we

have

a

unique

position

in

that

segment.

And

the

recent

report

from

Barclays,

Pet

Food,

the

best

category

in

food

industry.

And

on

page

6,

under

point

9,

it

says

Symrise

is

the

only

company

who

made

meaningful

entrance

in

this.

So

that

is

a

unique

thing

which

differentiates

us

from

all

the

other

competitors.

And

we

will

continue

to

drive

this

unique

thing.

And

our

clear

goal

is

by

2025

we

will

have

this

€1.5

billion

business

unit.

I

think

that

shows

our

ambition.

And

so

Matthew,

in

that

respect,

the

best

is

yet

to

come,

okay?

[Matthew Yates, Analyst, BofA Securities]

Thanks

very

much,

guys.

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Thank

you

for

the

question.

Next

question

comes

from

Heidi

Vesterinen

from

BNP

Paribas

Exane.

Please

go

ahead.

[Heidi Vesterinen, Analyst, Exane BNP Paribas]

Morning.

I,

first,

have

a

question

on

the

new

segment,

your

decision

to

rename

Flavor

&

Nutrition,

what

actually

changes

on

the

ground

and

for

your

customers?

And

are

you

now

a

believer

in

integrated

solutions?

[Heinz-Jürgen Bertram]

Heidi,

good

to

hear

from

you,

again.

And

well,

as

we

discussed

quite

a

few

times,

on

the

long

run,

it

made

sense

to

reshuffle

the

food

ingredient

and

the

flavor

business

to

put

it

together.

The

synergies

from

these

two

businesses

are

so

striking

that

there

are

top

and

bottom

line

synergies.

After

we

did

the

Diana

acquisition,

and

we

knew

we

did

the

damn

best

acquisition

in

our

industry.

We

took

our

time

to

develop

trust

and

to

preserve

all

the

assets.

One

of

them,

we

just

discussed

with

Matthew

so.

But

after

six

years,

it's

time

to

look

for

some

additional

synergies,

putting

it

together

just

makes

sense

and

I

think

does

not

come

by

surprise

for

many

of

you.

Integrated

solutions,

if

that

–

we

discussed

that

as

well.

If

that

means

one-stop

shopping,

I am

not

a

believer

in

it.

If

that

allows

additional

product

benefits,

plus

some

synergies,

as

we

need

just

one

team

for

the

same

accounts,

as

we

said,

and

that

we

have

a

lot

of

overlap

in

R&D.

For

example,

in

food

ingredient,

it

was

called

culinary.

In

flavors,

it

was

called

savory,

two

names

for

the

same

thing.

Why

not

combining

these

resources

and

addressing,

in

particular,

even

better

the

challenges

of

the

future,

Heidi,

which

is

protein

alternatives

and

sugar

replacement.

All

this

is

something

which

is

not

traditional

flavors,

but

close

to

flavors,

but

to

the

other

extent,

in

food

ingredients

to

some –

so

for

that

extent,

it

makes

sense

to

combine.

And

if

you

want

to

name

that

integrated

solution,

I'm

absolutely

with

you.

If

it

says

one-stop

shopping,

you

lost

me,

okay?

[Heidi Vesterinen, Analyst, Exane BNP Paribas]

Thank

you.

And

then

another

question,

I am

curious

about

your

ambition

in

Nutrition.

Do

you

think

you

will

stay

in

Pet

Food

or

do

you

see merit in

moving

outside

of

Pet

Food

in

a

big

way?

Say

if

you

found

acquisition

or

merger

opportunity

with

somebody

with

leadership

and

other

types

of

nutrition

solutions,

would

that

make

sense?

[Heinz-Jürgen Bertram]

At

this

point

in

time,

we

focus

on

expanding

our

Pet

Food

capabilities. I

just

gave

the

numbers,

and

I

think

there the

significant

growth.

And

short

and

midterm,

we

want

to

leverage

on

these

opportunities.

Heidi,

again,

this

is

something

which

makes

us

unique,

a

strong

differentiator

and

we

would

be

foolish

on

not

leveraging

on

that

potential.

In

that

area,

all

guns

are

loaded.

We

are

broadening

our

protein

basis.

That's

why

we

did

the

acquisition

of

ADF/IDF.

That's

why

we

did

the

next

acquisition,

Michael

Foods.

That's

why

we

did

the

acquisition

of Schaffelaarbos,

all

expanding

the

protein

basis

into

new

areas

and

with

Wing

Biotech,

broadening

our

business

presence

in

Pet

Food.

So

you

see

we

are

doing

everything

to

stress

that

one.

If

there

is

a

nutrition

opportunity

coming,

which

also

has

a bright

potential

and

makes

us

unique

in

that

respect,

we

are

open

to

it.

You

heard

from

Olaf, the

financial

headroom

is

there. But

at

the

moment,

our

focus

is

short

and

midterm

on

Pet

Food,

okay?

[Heidi Vesterinen, Analyst, Exane BNP Paribas]

Thank

you.

[Heinz-Jürgen Bertram]

You're

welcome.

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Thanks,

Heidi,

very

much.

Next

question

comes

from

Thomas

Swoboda

from

Société

Générale.

Thomas,

please

go

ahead.

[Thomas Swoboda, Analyst, Société Générale SA (Germany)]

Yes.

Hello,

everybody,

and

thank

you

for

taking

my

questions.

I

have

three

quick

ones,

please.

On

volumes,

in

2022,

[audio gap]

(41:45-41:49) so

my

question

is,

do

you

expect

any

meaningful

volume

growth

in

2022,

or

is

2022

just

about

price?

My

second

question

is

about

phasing.

Some

of

your

competitors

were

pointing

towards

profitability

recovery

in

the

second

half

of

the

year.

It

doesn't

sound

like

you're

seeing

the

same.

So

just

to

confirm, you –

is

it

what

you

expect

a

rather

equal

normal

distribution

of

the

profit

generation

in

2022?

And

the

third

question

is

more

follow-up.

I am

not

sure

if

I

heard

you

correctly.

Do

you

see

inflation

already

flattening?

Or

do

you

fear

that

inflation

is

still

on

the

upper trend

and

that

you

might

need

to

go

back

to

your clients

and

increase

prices

again?

Thank

you.

[Heinz-Jürgen Bertram]

Thank

you,

Thomas.

I

start

and

then

I

hand

it

over

to

Olaf

to

give

you

more.

So, the

second

question

is

clear,

yes,

and

the

second

question –

the

third

question

is

a

no.

So

we

have

not

seen

the

end

of

inflation

yet.

So

there is

still

obviously

something

going

on,

not

that

steep,

but

it's

still

going

on.

And

with

the

latest

crisis,

we don't

know

where

it

ends.

But

we

feel

well

equipped

to

handle

it.

As

we

said,

thanks

to

the

raw

material –

to

our

backward

integration,

that

helps

to

navigate.

And in

profit,

we

don't

see

a

dip

in

first

half.

So

we

expect

it

to

be

on

a

good

level,

stable.

That's

why

we

did

our

guidance.

Olaf,

and

you

want

to

do

on

volume

and

price

and

all

this?

[Olaf Klinger, Chief Financial Officer, Symrise AG]

Yeah,

Thomas,

thanks

for

your

question.

Keep

in

mind,

I

mean,

we

will

have

very

high

comps

in

the

course

of

this

year

compared

to

last

year

as

everything

was

volume

driven.

So

what

we

said

is

that

volume

will

play

a

role,

but

there

will

be

substantially

more

price

to

deliver

the

5%

to

7%

growth

ambition.

I

think

that's

where

we

should

leave

it

at

the

moment

given

this

– dealing

all

the

unsecurity

we

have

in

our

environment.

You

see

us

very

comfortable

and

a good

part,

especially

in

Pet

Food

will

also

be

volume

driven.

[Thomas Swoboda, Analyst, Société Générale SA (Germany)]

Perfect.

Thanks.

[Olaf Klinger, Chief Financial Officer, Symrise AG]

You're

welcome.

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Thanks

a

lot.

Very

good.

Next

question

comes

from

Isha

Sharma

from

Stifel.

Please

go

ahead.

[Isha Sharma, Analyst, Stifel Europe Bank AG]

Hi,

good

afternoon.

Thank

you

for

taking

my

questions.

I

just

have

two

left,

please.

On

the

EBITDA,

I

know

you've

already

answered

quite

a

bit

on

this.

But

just

to

clarify,

you

had

around

€25

million

of

adjustments

as

well

in

EBITDA,

and

they

were

more

on

the

positive

side.

So

the

reversal

of

this

going

into

next

year

along

with

price

increases,

which

usually

have

a

mathematical

dilution.

I am

unable

to

understand

how

I

can

make

a

bridge

of,

let's

say,

a

flattish

EBITDA

development

close

to

the

21.2%

that

you

have

reported for

2021.

And

the

second

question

is

on

sustainability.

You

strive

to

be

climate positive

by

2030.

What

exactly

do

you

mean

by

this?

Because

if

I

look

at

your

progress

to

[indiscernible]



(45:19)

CO2

reduction

and

also

your

commitment

to

science-based

targets,

you

are

lagging

behind

your

peers

in

the

same

industry.

So

some

light

on

that,

a little

bit

more

quantifiable

would

be

great.

Thank

you

so

much.

[Heinz-Jürgen Bertram]

First,

EBITDA

performance,

21%.

Olaf,

you

hop

in,

if

I am

not

giving

Isha

the

full

picture.

It's –

we

had

some

special

effects

this –

the

last

year.

And

we

give

our

guidance

out

for

this

year

21%,

because

we

believe

we

have,

as

we

said,

the raw –

the

backward

integration

will

have

–

help

us

even

through

the

turbulent

times.

We

have

acquired

the

Sensient

business,

which

was

highly

dilutive

and

we

have

indicated

that

to

the

market

strategically.

It

makes

a

lot

of

sense

because

it's

the

continuation

of

our

Pinova

business.

We have

shown

at

the

Pinova

business

that

we

were

able

to

improve

the

profitability

and

we

will

be

able

to

do

the

same

thing

this

year.

So

that

is

one

contributor,

which

will

help

us

very

well to

improve

the

EBITDA

margin

on

the

Scent

&

Care end.

And

the

other

side,

on

the

Flavor

&

Nutrition

end,

as

we

said,

we

have

divested

dilutive

businesses.

The

natural

color

business

was

dilutive

on

our

end

and

we

have

acquired

businesses,

which

are

accretive.

So

all

in

all,

that

gives

us

some

confidence,

good

confidence,

that

even

without

special

effects

and

adjustments,

we

will

be

able

to

get

to

around

21%.

And

we

are

confident

that

we

will

be

able

to

deliver

that.

On

the

other

side,

Isha,

you

confuse

me.

We

are

well

on

track

on

our

business

progress

to

bring

us

climate

positive.

And

in

that

respect,

we

believe

we

are

leading

compared

to

competition.

I am

not

aware

that

any

one

of

our

competitors

has

committed

to

be

climate

positive

by

2030.

And

in

our

annual

report

which

we

will

publish,

we

monitor

our

progress.

And

so

far,

we are

well

on

track.

In

2025,

I

think

we

will

have

reduced

our

CO2

emission

by

63%.

And

again

by

2030,

we

will

be

climate

positive.

We

have

done

initiatives,

which

are

different

to

anyone

else

in

our

industry.

We

have

built

our

own

power

plant,

amongst

others.

We

are

changing

all

our

processes.

Also,

again,

bear

in

mind,

where

you

have

been

with

us

in

Pinova,

green

chemistry,

sustainable

sourcing,

where

we

source

the

material

from

certified

forest,

and

that

was

actually

a

hint

from

one

of

our

key

customers

who

said,

you

can

be

the

first

and

only

ones

doing

this.

So

all

these

initiatives

show

we are

doing

unique

stuff,

and

we

are

on

the

forefront

of

sustainability.

So

wherever

you

got

the

information

from

that

we

lag

behind,

we

believe

we

have

different

information

and we are

well

on

track

on

it,

okay? Olaf,

you...

[Isha Sharma, Analyst, Stifel Europe Bank AG]

Maybe

we

can

take

this

offline.

Thank

you.

[Heinz-Jürgen Bertram]

Yeah.

We

–

anytime,

Isha.

[Isha Sharma, Analyst, Stifel Europe Bank AG]

Thank you.

[Heinz-Jürgen Bertram]

So,

Olaf,

you

want

to

add?

So

it

was

complete,

okay? Thanks, Olaf.

[Olaf Klinger, Chief Financial Officer, Symrise AG]

Nothing

to add.

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Should

I

jump

in? Yeah.

Isha,

thanks

a

lot. The rest, we will

take

offline.

[Olaf Klinger, Chief Financial Officer, Symrise AG]

Thanks

a

lot,

Isha.

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

And the

next

question

comes

from

Charles

Bentley

from

Jefferies.

Charlie,

please

go

ahead.

[Charles Bentley, Analyst, Jefferies International Ltd.]

All

right.

Thanks

for

taking my

questions.

So sorry

to

keep

on

coming back,

but

just

on

price

into

next

year.

So

you are

talking

around

6%

raw

material

cost

inflation,

plus

the

kind

of

2%

from

FY

2021

with

no

pricing.

So

if I

to

assume

any

further

increases,

that

would

imply

probably

3%

pricing

to

offset.

Is

that

a

fair

assumption?

Do

you

think

you

can

kind

of

get

there?

And

then

if

I

just

look

at

the

kind

of

margin

cadence

into

2022,

I

mean,

I

think

that

the

margins

in

Scent &

Care

should

obviously

be

higher

than

in

the

second

half of

2021.

If

you

can

kind of

help

with

kind

of

2020

–

sorry,

the

first

half

versus

the

second

half?

And

then

also

in

Flavor

&

Nutrition,

that would

be

very

helpful.

Thank

you.

[Heinz-Jürgen Bertram]

So

Scent

& Care, as

I am

responsible,

yes,

it

should

be

certainly

higher

second

half

of

last

year.

As

I

said,

in

second

half,

we

had

Sensient

acquisition

and

with

all

dilutive

effect.

And

you

will

see

we

are

making

progress.

And

we

have

shown

it

with

Pinova

that

we

know

what

to

do

and

how

to

do.

We're

very

confident

that

we

will

see

some

progress

there.

Nothing

to

be

concerned

at

all.

Olaf,

you

want

to

add

to the

other

point?

[Olaf Klinger, Chief Financial Officer, Symrise AG]

No,

I

mean,

Heinz,

you

mentioned

the

Scent

&

Care

situation

last

year,

I

mentioned

in

my

speech

that

we

had,

of

course, in

the

second

half,

higher

packaging,

higher

energy,

higher

logistic

costs,

and

we

took

price

increases

in

the

second

half

of

last

year,

which

will

kick

in

only

this

year

to

the

majority.

So

let

us

work

on

this,

as

described,

and

I

think

that's

where

we

should

leave

it

at

the

moment

to

protect

our

margin

environment.

[Charles Bentley, Analyst, Jefferies International Ltd.]

Okay.

Great.

Can

I

just

follow

up

on

one

question?

So

just

on

Q1

–

sorry

on

H1

margins,

would

you

expect

them

for

the

group

to

be

higher

than

in

the

second

half?

[Heinz-Jürgen Bertram]

The

margins,

as

the

previous

question,

I

think,

from

Lisa,

was

we

expect

not

a

dip

in

margin

for

the

first

half,

and

we

do

not

expect

a

slight

dip

in

margin

in

the

second

half.

As

per

now,

we

believe

we

will

show

a

stable

and

healthy

margin

throughout

the

year,

okay?

[Charles Bentley, Analyst, Jefferies International Ltd.]

Great.

Thanks,

Heinz-Jürgen.

Thanks

a

lot.

[Heinz-Jürgen Bertram]

You're

welcome.

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Charlie,

many

thanks.

We're

getting

closer

to

the

end

of

our

today's

conference

call.

Last

question

comes

from

Charles

Eden

from

UBS.

Charles,

please

go

ahead.

[Charles Eden, Analyst, UBS AG (London Branch)]

Hi,

good

afternoon.

Thanks

for

taking

me

in.

Just

two

quick

ones

for

me.

Firstly,

can

you

remind

us

with

respect

to

the

cyber-attack,

have

you

received

your

insurance

payment

for

that?

If

so,

is

it

booked

in

FY

2021,

or

is

that

something

to

come

in

2022?

And

then

my

second

question,

just

in

Flavors.

Can

you

just

talk

a

bit

about

the

growth

expectation

by

the

categories, say,

beverages,

savory,

sweet,

dairy?

Is

there

any

significant

variance

in

growth

you're

expecting

in

2022

across

that

division?

Thank

you.

[Heinz-Jürgen Bertram]

Okay.

Olaf,

you

may

want to

handle

the

cyber

thing,

and

I

handle

this

growth

expectation

by

flavors.

You

start?

[Olaf Klinger, Chief Financial Officer, Symrise AG]

So

on

cyber,

the

reimbursement

is

expected

this

year

and

there's

nothing

in

the

books

yet.

[Heinz-Jürgen Bertram]

Okay.

That

was

precise,

crisp

and

short.

So

I am

talking

flavors.

So

from

what

we

see

now, we

expect

a

continuous

healthy

momentum

in

beverages.

And

we

think

with

the

acquisitions

we

have

done

recently,

we

will

also

continue

to

benefit

in

culinary/savory.

Having

said

that,

that

is

by

categories

and

categories

to

highlight

the

areas

of

growth.

We

see

a

strong

momentum

in

Asia

going

in

the

past.

And

this,

we

expect

to

go

on.

So

by

regions,

I

would

stress

Asia,

we

expect

most

dynamics

and,

in

particular,

in

the

categories,

beverages

and

culinary,

okay?

[Charles Eden, Analyst, UBS AG (London Branch)]

That's

great.

Thank

you.

And

Olaf, are

you

able

to

give

any

sort

of

size

guidance

on

that

insurance

payout,

and

will

it

go

into

your

core

numbers

or

adjusted

it

for

your

GAAP numbers?

Thank

you.

[Olaf Klinger, Chief Financial Officer, Symrise AG]

Again,

it's

not

in

the

guidance,

and

therefore,

I

think

let's

wait

for

the

outcome,

and

I

will

inform

you,

of

course,

once

we

have

clarity

on

this.

[Charles Eden, Analyst, UBS AG (London Branch)]

All Right.

Thank

you.

[Heinz-Jürgen Bertram]

Okay.

[Tobias Erfurth, Head-Investor Relations, Symrise AG]

Thank

you.

Dear

participants,

this

brings

us

to

the

end

of our

today's

conference

call.

I

know

that

you

are

all

very

busy

today

with

so

many

companies

presenting

results.

So

we

are

thankful

for

your

time

today

and

your

ongoing

interest

in

Symrise.

We are

looking

forward

to

seeing

you

in

the

upcoming

virtual

conferences

and

virtual

roadshows.

And

above

all,

we

hope

to

see

you

in-person

soon.

We

will

publish

our

trading

update

for

the

first

quarter

on

April

27.

That's

it

for

today.

So

thank

you

very

much.

Good-bye,

and

have

a

nice

day.

[Operator]

We

want

to

thank

all

the

participants

of

this

conference.

Thank

you.

Good-bye.