Financial Targets
Shaped by private equity and a
levered buyout before the IPO, the Group is managed to a large extent
on the basis of performance indicators. In addition to revenue the most
closely monitored indicator for measuring the Company’s operating
success in 2007 was EBITDA, which is recognized at the Group and
divisional level for the purposes of internal management reporting.
According to the definition used by Symrise, EBITDA is operating profit
(EBIT) adjusted for amortization and depreciation. EBITDA is an
indicator of the Company’s sustainable operating performance, but is
not an indicator defined pursuant to IFRS. EBITDA is therefore
supplemented by other indicators calculated on the basis of IFRS, in
particular operating cash flow, which differs considerably from EBITDA
due to the change in working capital, and cash flow from investing and
financing activities.
The Company also uses capital market-oriented indicators, such as adjusted earnings per share and free cash flow. Adjusted earnings per share are earnings per share adjusted for one-off tax effects, non-cash interest movements, and amortization of recipes.