THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

Repayment of Bank Borrowings
The Senior Facility Term A is repayable in the period from 2009 to
2011 in the following installments:
2009
15%
10% of the Senior Facility Term A has already been repaid in 2008,
as scheduled. The next installment of 15% due in 2009 has been
classified under current borrowings (note 8.16).
The basis for the computation of the repayment installments is the
nominal amount of the borrowings considering usage in the respective
currency. The amount comprises a) a component denominated
in euros amounting to € 380.0 million; and b) a
component denominated in $ amounting to $ 150.0 million. The
exchange rate used for currency translation of the Senior Facility
Term A was 1.4163 $/€.
Securities
The total nominal amount of the above-mentioned credit agreements
is € 800.0 million, of which amounts of € 500.0 million and
$ 300.0 were drawn upon as at December 31, 2008. The loans
are measured at amortized cost and are disclosed as a current
component and a noncurrent component in accordance with the
terms to maturity. As a consequence, the Group had unutilized
credit lines available at December 31, 2008 amounting to € 44.1
million (prior year: € 172.0 million). We refer to the disclosures in
note 8.16.
Symrise has agreed financial covenants with the financing banks
to comply with agreed limits to the following key ratios:
a) EBITDA/net interest expense
b) Net debt/EBITDA.
These key ratios are monitored on a quarterly basis.
Annual Report 2008 Symrise AG 137
2010
15%
2011
60%
8.21. Contingent Liabilities and
Other Financial Commitments
As at December 31, 2008, the Group had the following contingent
liabilities and other financial commitments:
Operating Leases
Payment commitments derive from non-cancelable operating
lease agreements mainly entered into for motor vehicles and buildings.
Some of the agreements contain renewal options or escalation
clauses but do not include purchase options. The aggregate
net future cash outflows are phased as follows:
T€
In the fiscal year
Due next year
Due in two years
Due in three years
Due in four years
Due in five years
Due in six years
or thereafter
Total
Minimum
operating
lease payments
2008
9,660
9,764
7,924
5,188
3,912
3,091
6,294
45,833
Operating
sublease
payments
receivable
2008
-324
-116
-44
0
0
0
0
-484
Net
operating
lease
payments
2008
9,336
9,648
7,880
5,188
3,912
3,091
6,294
45,349
Net
operating
lease
payments
2007
8,349
7,967
5,933
4,239
2,934
2,385
10,672
42,479
Insurance and Endorsement of Bills
As at December 31, 2008, commitments and contingent liabilities
amounting to T€ 239 (2207: T€ 22) derived from the issue and endorsement
of trade and commercial bills.
Other Commitments
As at December 31, 2008, the group had commitments of € 7.1
million (2007: € 4.7 million) for the purchase of property, plant
and equipment. These mainly related to production equipment.
Further commitments of € 31.7 million (2007: € 38.7 million) derived
from open contracts for other assets and services.
With effect from February 1, 2006, Symrise GmbH & Co. KG entered
into a service agreement with Atos Origin GmbH to outsource
its internal information technology functions for a term of
ten years. The fees payable reduce successively over the term of
the agreement from € 12.1 million in 2008 to € 10.8 million
in 2015. The total remaining obligation to Atos amounts to
€ 92.2 million.
Notes