THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

7. EARNINGS PER SHARE
Basic undiluted earnings per share are calculated by dividing the
profit for the year attributable to the holders of the parent company’s
ordinary shares by the average number of ordinary shares
outstanding during the year.
No option or conversion rights were issued either in 2008 or 2007,
so that the diluted and basic undiluted results are identical.
Earnings per share in €
Weighted average number of ordinary
shares, in thousands
8. CONSOLIDATED BALANCE SHEET
8.1.Cash and Cash Equivalents
T€
Cash
Cash equivalents
Cash and cash equivalents
Bank balances in the Group’s key currencies earn interest at variable
rates of up to 7.0% (2007: between 3.0% and 6.0%). The carrying
amounts for cash and cash equivalents correspond to their
fair value.
8.2.Trade Receivables
T€
Trade receivables
Less: Provision for doubtful accounts
Trade receivables, net
2007
0.82
118,173
2007
78,991
259
79,250
2007
218,625
-4,147
214,478
2008
0.76
118,173
2008
68,664
196
68,860
2008
224,007
-2,321
221,686
The risk of default for trade receivables is limited due to the large
number of customers and their widely diversified activities in different
markets. In view of this, management believes that the risk
has been appropriately measured. Any allowances for bad debts
are mainly based on an individual assessment of the default risk.
The carrying amount of trade receivables corresponds to their fair
value.
8.3.Derivative Financial Instruments
Derivative financial instruments are recognized as assets or liabilities
at their fair value.
Financial instruments held
for trading
Interest rate swaps T€
Interest rate swaps TUS$
Balance Sheet Presentation
T€
Prepayments, other assets
and receivables current
Other assets noncurrent
Other current liabilities
(Point 8.17)
Other noncurrent liabilities
(Point 8.18)
Net receivables from derivatives
and liabilities
Face Value
2007 2008
480,000
75,000
760,000
265,000
Carrying
amount
2007
1,251
9,301
Derivative financial instruments with a nominal value of € 380 million
(2007: € 100 million) and $ 90 million (2007: $ 75 million)
have a term to maturity of less than one year.
The nominal value of derivative financial instruments with a term
to maturity of between one and five years amounted to € 380 million
and $ 175 million (2007: € 531 million).
Cash Flow Hedges
The Group has designated cash flow hedges related to the hedging
of interest risks. The hedged item consists of borrowings that
form part of an overall credit facility amounting to € 800 million,
which has a term until December 13, 2011.
As a result of contracted plain vanilla payer interest swaps, Symrise
is charged variable interest by its bank trading partner and
pays a fixed interest rate in return. This interest rate is fixed over
the term of the swap and eliminates the risk of fluctuating cash
flows, which would result from the variable interest bearing liabilities
that have been designated as the hedged item.
0
0
10,552
Fair value
2007 2008
10,366
273
-9,089
-8,117
Carrying
amount
2008
0
0
-503
-14,859
-15,362
120 Annual Report 2008 Symrise AG