THE NATURE OF OUR BUSINESS â€“ STABLE GROWTH - Symrise

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3. DETERMINATION OF FAIR VALUE Many of the Group’s accounting policies and note disclosure requirements require that a fair value is determined for financial and non-financial assets and liabilities. Fair value for measurement and/or disclosure purposes has been determined using the methods described below. Where applicable, further information regarding the assumptions used to determine fair value is contained in the notes specific to the particular asset or liability. Derivatives The fair value for an interest swap corresponds to the market price, inasmuch as an active market exists. If no market price is available, then fair value is estimated by discounting the difference between the contractually agreed price and the current price for the remaining term of the contract using a risk-free interest rate (based on government bonds). The fair value of a currency swap is based on listed market prices. These prices are validated by discounting estimated cash flows based on the individual contracts, using a market interest rate for a similar instrument at the date of the validation. Property, Plant and Equipment The fair value for items of property, plant and equipment recognized as a result of a business combination is based on market values. The market value for real estate is based on the estimated value at which the real estate could be sold on the day of measurement under the presumption that this would represent a business transaction between a willing buyer and a willing seller under the terms of which both parties operate knowledgeably, prudently and without compulsion and the transaction is preceded by adequate marketing activities. The market values of items of plant, equipment, fixtures and fittings are based on quoted prices for similar items. Intangible Assets The fair value of recipes recognized as a result of a business combination is based on discounted estimated royalty payments that were avoided as a result of the recipe becoming owned. The fair value of other intangible assets is based on the discounted cash flows that are expected to derive from the use and eventual sale of the asset. Investments and Other Financial Liabilities The fair value of investments that are traded on regulated financial markets is determined by reference to the stock exchange quoted market (bid) price. The fair value of investments for which no regulated market exists is derived by reference to the current market price of comparable instruments or is calculated based on the cash flows expected to derive from the underlying asset. The fair value of financial liabilities determined for disclosure purposes is calculated on the present value of future principal and interest payment cash flows which are discounted using an interest rate valid at the balance sheet closing date. 4. CAPITAL MANAGEMENT It is management’s policy to maintain a strong capital base in order to maintain investor, creditor and market confidence and to sustain the future development of the business. The Executive Board regularly monitors the ratio of net debt (including pension liabilities) to EBITDA. The Executive Board also regularly monitors the level of dividends paid to ordinary shareholders, for whom we aim to provide a level of dividend yield that justifies confidence in future business results. The Executive Board strives to maintain a balance between more favorable weighted average capital costs (WACC) by taking up additional borrowing and the advantages and security provided by a solid equity base. This also applies to suitable acquisition opportunities that are made possible for the Group by virtue of solid financing. The average interest expense on interest-bearing loans was 4.8% and the ratio of net debt to EBITDA was 3.2. There was no change in the Group’s approach to capital management during the reporting period. Neither the Company itself nor its subsidiaries are subject to externally imposed capital requirements. 112 Annual Report 2008 Symrise AG
5. SEGMENT REPORTING For the purpose of segment reporting, the activities and products of the Group are grouped together into business divisions in which the conditions governing market risks and opportunities are substantially the same. As a result, Symrise maintains two business divisions: Flavor & Nutrition, which develops, produces and sells flavors for beverages, foods and pharmaceutical products; and Scent & Care, which develops, produces and sells fragrances, scents and cosmetic ingredients. The Group makes separate disclosures below, as required under IAS 14 for the divisions Flavor & Nutrition and Scent & Care (primary segments) and for geographical regions (secondary segments). Geographical segment reporting is based on asset locations. Sales to customers are reported in the geographical segment in which the customer is located. Annual Report 2008 Symrise AG 113 Notes
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THE NATURE OF OUR BUSINESS - STABLE
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Key Figures € million Sales Scent
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4 - 51 52 - 92 93-98 99-147 148-152
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April 25 Symrise organizes the “t
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2008: A financial crisis became an
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We can hope that 2009 will bring th
Page 13 and 14:
Dominique Yates CFO since October 2
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Growth Means Stability - in Nature
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OUR THREE BRAND PILLARS The flavors
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Flavors and Fragrances Are More Tha
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Our requirement is to meet new requ
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Innovation Is Never Just About Prod
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MORE INNOVATION THROUGH MORE INTEGR
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Responsibility Knows No Boundaries
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emissions. We require of ourselves
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Dr. Gerold Linzbach, speaking with
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divisions. At the same time, the na
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are increasingly strict and expensi
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ically examine the costs from the v
Page 39 and 40:
Our People Success has many faces.
Page 41 and 42:
A complete Junior Perfumer program
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cludes the Symrise share, declined
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Attractive Dividend Proposed for 20
Page 47 and 48:
The Executive Board and Supervisory
Page 49 and 50:
A breakdown of the total remunerati
Page 51 and 52:
Report of the Supervisory Board In
Page 53 and 54:
Annual and Consolidated 2008 Financ
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Detail Index Group Management Repor
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As a rule, our flavor, fragrance an
Page 59 and 60:
The organizational structure is cus
Page 61 and 62:
Flavor & Nutrition Beverages Sweet
Page 63 and 64: Flavor & Nutrition: Innovations and
Page 65 and 66: MARKET SHARE F&F INDUSTRY (total
Page 67 and 68: Financial Objectives and Value-base
Page 69 and 70: half of 2009. After integration cos
Page 71 and 72: SALES BY REGION € million EAME As
Page 73 and 74: RECONCILIATION € million EBIT EBI
Page 75 and 76: “AND” Products Grow Faster Sale
Page 77 and 78: ucts was significantly lower than o
Page 79 and 80: 6. FINANCIAL POSITION Main Financia
Page 81 and 82: 8. OTHER FACTORS RELEVANT TO RESULT
Page 83 and 84: High Performance Sales Training, co
Page 85 and 86: active health promotion programs an
Page 87 and 88: Customer complaints about product q
Page 89 and 90: The following table shows when our
Page 91 and 92: › our position on the core lists
Page 93 and 94: Dr. Gerold Linzbach therefore reque
Page 95 and 96: Consolidated Income Statement T€
Page 97 and 98: EQUITY AND LIABILITIES T€ LIABILI
Page 99 and 100: T€ Balance brought forward Invest
Page 101 and 102: Notes to the Consolidated Financial
Page 103 and 104: company is lost. The changed provis
Page 105 and 106: Further information on share intere
Page 107 and 108: If the requirements of IAS 39 with
Page 109 and 110: The sales tax amount that is recove
Page 111 and 112: opment costs recognized are amortiz
Page 113: tion results in a gain, any recogni
Page 117 and 118: 2008 T€ Sales External sales Resu
Page 119 and 120: 6. CONSOLIDATED INCOME STATEMENT 6.
Page 121 and 122: 6.8.Financial Result T€ Interest
Page 123 and 124: The interest risk that is hedged is
Page 125 and 126: The deferred tax assets and liabili
Page 127 and 128: 2008 T€ Cost As at January 1, 200
Page 129 and 130: 8.12. Property, Plant and Equipment
Page 131 and 132: 8.13. Acquisitions Cambridge Theran
Page 133 and 134: Current bank borrowings are not sec
Page 135 and 136: A new pension plan was established
Page 137 and 138: The entity in the US provides healt
Page 139 and 140: Repayment of Bank Borrowings The Se
Page 141 and 142: The following table shows amounts r
Page 143 and 144: Sensitivity Analysis for Derivative
Page 145 and 146: 11. LONG TERM FINANCIAL RISK MANAGE
Page 147 and 148: continuance Company M&G Investment
Page 149 and 150: Annual Report 2008 Symrise AG 147
Page 151 and 152: Responsibility Statement (“Bilanz
Page 153 and 154: Dr. Peter Grafoner* Horst-Otto Gerb
Page 156: Symrise AG Mühlenfeldstraße 1 376
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THE NATURE OF OUR BUSINESS â€“ STABLE GROWTH - Symrise

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