THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

ically examine the costs from the very outset. We combine efficient
recipe design with a procurement strategy that continually
looks for new markets for high quality but less expensive raw materials.
Our supply chain is designed to be flexible enough to
quickly adjust to new systems and technologies. Overall we have
a holistic approach that goes from the purchase of a raw material
to the delivery of the finished product. Cost reduction and service
improvement go hand in hand.
In 2009, companies around the world are cutting back on
personnel to reduce costs. Do you think a reduction of staff
is an acceptable way of cutting costs?
Both job cuts and job additions are subject to the same principle.
At the end of the day, there are only as many jobs as competitiveness
allows. This applies every year, in every business environment,
not only for 2009. As a publicly traded company, we at
Symrise are obliged to be competitive, and we must be responsible
to everyone who has put their trust in us – our shareholders
and customers as well as the countries where we operate. If we
see our competitiveness endangered, we have to act. But there
are other things that can be done before jobs are cut. Cutting jobs
is an extreme but, in certain circumstances unfortunately, a necessary
and legitimate measure to safeguard vital investments for
the company and ultimately keep as many jobs as possible.
Is Symrise planning job cuts for 2009?
Every year we develop various scenarios so that we can react
quickly to market developments. When there are positive
developments, we have to be in a position to expand capacities,
possibly with the help of additional personnel. With negative developments,
we have to be able to reduce capacities, by cutting jobs
if need be. In both cases it’s a matter of maintaining and increasing
productivity. And in both cases we try to achieve this without
adding or reducing personnel. Before job cuts are contemplated,
other measures are considered, such as process optimizations,
new technologies and various savings measures in each area. But
if job cuts are necessary, we shouldn’t hesitate. If cutbacks should
be required, we have plans to make this is as socially responsible
as possible for the people affected.
In short, no job cuts are planned at Symrise at present, but this
cannot be completely ruled out. In today’s economy, a responsible
entrepreneur cannot guarantee jobs, just as he cannot guarantee
good results. Cutting back on jobs is not an end in itself. For us at
Symrise the primary issue is not whether we have too many people.
The most important question, rather, is whether we are in the
Annual Report 2008 Symrise AG 35
right segments. As a business enterprise, we only want to be active
in segments that promise profitable business. After that we
strive for results that safeguard our employees.
Do you have a forecast concerning the development
of the Symrise share?
Needless to say, we are not happy about the negative development.
The stability we have shown since we entered the stock market is
not reflected in the development of our share. There are many external
factors affecting the share that we can’t influence at all. We
focus on what we can influence – on our margins, our costs and
processes, on innovative products. Our strategy is long term. If we
realize it, we will be able to achieve stable, sustained growth and
continually better results. Despite the current situation we believe
that the stock market will honor our stability over time.
What will you do to promote the share?
Above all, we will try to have good business results. But good results
alone are not enough. They have to be communicated well.
In 2009, we intend to further intensify communication with our investors
and potential investors. We intend to develop a closer relationship
with our key investors. In the long run, we can only
expect more trust from investors if they understand us better. We
have therefore made investor communication a top priority of the
entire Executive Board.
Dividend payments in the current economic environment
have been criticized by some. Should a company cut or stop
dividend payments to save jobs?
The values driving the criticism are important ones – responsibility
and solidarity. But we should be careful about inaccurate overmoralizing
and ideology. The shareholder is usually not the
care-free, well-to-do individual. In most cases we are dealing with
an investor group that helps normal everyday people secure their
life insurance and build their personal savings. Sometimes the capital
is needed by the company itself to ensure the company’s development.
Reducing the question of solidarity to an oversimplified
either-or is not helpful. A publicly listed company has to be responsible
to both its shareholders and it employees. In the end,
playing one group off against the other won’t be responsible to either
group. It goes without saying that it would be irresponsible to
pay a dividend if it would jeopardize the company’s financial stability.
That would be neither in the interests of the employees nor
in the interests of the shareholders.
Unternehmen
Company